NPower gas 'sculpting'

Sterling

Kim Yeovil post # 885 – I quite agree - the more we email the BBC (and the like) the better (emails are free after all). Watchdog gave millions of viewers (including me) the erroneous impression that Ofgem had come up trumps. It was therefore nice to see the Times’ response. But what a pity “Watchdog” failed to correct its error the following week.

At the risk of stating the obvious, the BBC’s programme “Watchdog” is powerless to make Ofgem change its decision; although this pitiful result from Ofgem virtually screams to be in the public spotlight, and Nicky Campbell and team certainly need to take a second look at it. Instead they waffled pathetically on about the relative popularity of supermarket chains – a total non story if ever there was one.

DD your two latest posts (#894 & #895) are as usual most informative. By the way, I completely agree with you when you rightly pointed out in post # 869 that nothing Ofgem has said or done prevents affected Npower customers from continuing with their claims against Npower or new ones being started.

I also share your belief that Npower will still prefer to settle all such claims rather than go to court (where a defeat could open the floodgates). So the more people are aware of this the better, and the BBC etc could so easily help (and put right their over-optimistic interpretation of the Ofgem result last week).

In case it is of any use, here is a copy of an email I wrote to the Chief Executive of Consumer Focus on Monday. I don’t know him of course, but I read his blog on the Consumer Focus website, and saw that he had made the same mistake as the BBC. I will let this thread know if I get a reply. I can’t say I’m over optimistic but you never know. I consider this will be a test as to whether Consumer Focus has any teeth; or if it is merely another paper tiger.

“23rd February 2009

To – Mr Ed Mayo, Chief Executive Consumer Focus

Dear Mr Mayo

Subject - Ofgem’s announcement on Npower’s overcharging (gas).

I refer to an entry in your blog dated 13th February concerning the above subject. I too shared your initial joy at what seemed to be good news. However, upon closer examination my joy evaporated, when I realised that Ofgem had disappointingly failed to protect the interests of all but a small minority of an estimated 2.2 million affected Npower gas customers who were overcharged by too many high rate gas units.

As you know, the problem arose because in May 2007 Npower changed from what it then called “seasonal weighting” (a seasonal bias in the percentage of high rate units charged each month) in favour of a uniform percentage being charged each month. But in November of the same year Npower then reverted back to an even more extreme form of “seasonal weighting” renaming it “gas sculpting”.

The result of these two complicated changes was that Npower deliberately charged all affected gas customers up to 2,249 more than the contractual maximum of 4,572 high rate units in any period of 12 months. That figure would equate to around a hundred pounds overcharged per customer at that level, but the average will of course be less. Furthermore, Npower failed to adequately announce to its affected customers either of these changes and the adverse cost effect they would have on a couple of million people’s gas bills.

In your blog you refer to the original complaint to Ofgem by your organisation’s predecessor Energywatch, and I assume the said complaint would have been worded in similar terms to my previous two paragraphs (albeit more fully).

Many of these 2.2 million customers (whom Ofgem has failed to protect) are vulnerable in one way or another; and can ill afford to be overcharged, and I’m sure you agree deserve to have full consumer protection, including a proper refund (of their own money) from Npower.

Accordingly, would you please let me know if you are prepared look into this matter as soon as possible. In that regard I would ask for your replies to the following

1. Would you please let me know if Energywatch’s complaint to Ofgem definitely included a specific request for Ofgem to consider the said percentage changes by Npower and the resulting overcharging it caused to an estimated 2.2 million of its gas customers?

2. If Energywatch’s complaint did not include such a request, would you now be willing to formulate a complaint to Ofgem in lieu that does?

3. If the Energywatch complaint did in fact include such a request, would you be prepared to ask Ofgem why then did this recent announcement by Ofgem ignore this central matter completely, confining itself merely to a side issue affecting a mere ten percent of the affected customers?

I hope you understand that my sole purpose in writing to you is to see that the people who are least able to complain about this matter receive any overpayments that are due to them. The more able and savvy customers have discovered various internet forum websites and have then discovered that the flimsy excuses and denials thrown at them by Npower can be overridden by persistence and threats of court action, after which Npower pays out “goodwill payments” rather than risk losing in court. It cannot be right for such an uneven state of affairs to continue, as I hope you will agree; and that the vulnerable consumers should be given their dues as well.

I look forward to hearing from you as soon as possible.

Yours faithfully” (etc)

DirectDebacle

Sterling work Sterling. Excellent. A few more sending similar emails might rattle Consumer Focus' cage.

Be interesting if you receive a response. Might take a while, as first thing they will have to do is try and understand the 'sculpting issue' and then debate whether it is anything they are authorised, let alone competent, to deal with. Don't give them too long. Wait a few days then send them a chasing email.

DirectDebacle

I took a leaf out of Sterlings book and read Ed Mayo (Consumer Focus) blog. Left a scathing comment which I thought would be deleted. However about 6 hours later received this email from him.

thanks so much for your comment - spending time on my blog takes me at most ten minutes a day and I do get the benefit of getting backblasts where I get things wrong. That's useful for me.

the npower stuff is deeper, more of a ripoff than was covered in this late ofgem action and I will pick up your comments with energy colleagues, as some of the history predates me. but the contact with consumers, particularly through complaints data is an umbilical one.

i couldn;t agree more with your praise for the times stuff on all of this

and if you turn your own energy from critique, we are campaigning for a Fuel Poverty Bill that we have helped to bring as a Private Members Bill, aligning a coalition of organisations behind this. This stuff is real and urgent for people hard-pressed to pay bills and any support you can give would be welcome!

Ed (Mayo)

Perhaps blogs are of more importance to the inflated ego than complaints made through official channels. I am sure Ed would appreciate more advice and suggestions on his blog. Go for it and ensure he spends more than ten minutes a day blogging. He needs something to fill his day.

Cardew

Great posts from Sterling and DD(as usual)!

Are you sure that ofgem will not publish in full the details of the Npower complaint and their findings, instead of the press release?

For all the criticisms of ofgem - of which there are many - it was not my impression that they failed to publish in full their investigations. Although from Ed Mayo's comment to DD -"the npower stuff is deeper, more of a ripoff than was covered in this late ofgem action" the terms of reference for their investigation is the problem.

DirectDebacle

Cardew wrote: »

Are you sure that ofgem will not publish in full the details of the Npower complaint and their findings, instead of the press release?

No not sure at all. Can't find anything other than the press release on the Ofgem site, however the investigation is still shown as open for some reason.

I have emailed Ofgem requesting full details of their investigation. The response may be illuminating.

1carminestocky

Apologies if this is incorrect (I have no expertise in this subject) but can't an individual make an FOI request to OFGEM?

http://www.ofgem.gov.uk/CustomPages/Pages/Freedomofinformation.aspx

Freedom of Information

The Freedom of Information (FOI) Act 2000 came into force on January 1st 2005. It gives people the right to request recorded information held by public authorities. Ofgem, as a government department, qualifies as a public authority.

FOI is designed to help people get a better understanding of how public authorities carry out their duties and make decisions.

DirectDebacle

1carminestocky wrote: »

Apologies if this is incorrect (I have no expertise in this subject) but can't an individual make an FOI request to OFGEM?

http://www.ofgem.gov.uk/CustomPages/Pages/Freedomofinformation.aspx

You are correct. Ofgem publish what type information they give here:

http://www.ofgem.gov.uk/About%20us/Documents1/1189_foi.pdf

In the first instance a request is made through normal channels, which is what I have done. If they do not disclose voluntarily the information then you can make a request under the FOI Act. If they refuse this then you can complain to the Parliamentary Ombudsman through your MP.

Hey ho here we go.

donnajunkie

we got £1. :j

meggsy

... and this man received £50 .... (Mr Bramwell and The Guardian are mentioned very early on this thread)

http://www.newsandstar.co.uk:80/news/gas_firm_feels_the_heat_after_hero_secures_1_2m_payout_1_519530?referrerPath=home

http://www.guardian.co.uk/money/2009/feb/21/energy-bills-npower-payback

Customers are already receiving their refunds,
donnajunkie you are not alone in receiving £1 it would seem ! :rolleyes:

http://forums.moneysavingexpert.com/showthread.html?t=1521595

DirectDebacle

donnajunkie wrote: »

we got £1. :j

donnajunkie, thank you for the info. If you are able could I ask you to post your bills for the relevant year npower say you were disadvantaged. Not having had the benefit of seeing how a low user was overcharged I would find it useful. Did their letter say the period for which the overcharging took place. If you wouldn't mind posting the letter that would be useful too. Leave out all personal/identification details of course. Thank you.