Mark Atherton
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The recent Times Money article that uncovered flaws in npower's billing system has struck a chord with readers. Many have contacted us to say that they think that they are among the 2.2 million npower gas customers who Energywatch, the energy watchdog, believes could have been overcharged for their fuel.
Ronen Orr, of Borehamwood, Hertfordshire, says: “Thanks to the article in Times Money I have checked my gas usage for last year. It was my understanding that I would be charged a maximum of 4,572 units at the higher rate. In reality, for 2007 plus a few days in December 2006, I was charged 8,924 units at the higher rate.
“I have now written to npower to ask for an immediate refund of all overcharged amounts since the start of my account with the company. I have also now left npower and will do all I can to warn my colleagues and friends about what I regard as the company's unfair tactics.”
Geoffrey Wheater, of Beaconsfield, Buckinghamshire, says: “I was delighted to read the article about npower. I have been fighting the company over a bill since September, when I believe that I was overcharged by between £17.50 and £23 for the year to mid-August. Subsequently, I reckon that I was overcharged by £48 for the six months to mid-February this year.
“I complained to npower in September but have had no joy. My two most recent letters, in March and April, have gone unanswered.”
The billing problem hinges on the question of how many units of gas npower can charge its customers each year at the higher of its two rates. Customers say that npower should not exceed the annual figure of 4,572 units, which it quotes in its literature and on its website.
However, npower says that its promise not to charge more than 4,572 units at the higher rate refers to “a tariff year”, which is not always the same length as a calendar year. The company starts a new tariff year each time that it changes its tariffs, which happened twice in 2007, resulting in a tariff year of only seven months from April to November.
Over those seven months npower also suspended its seasonal weighting temporarily. This weighting is designed to charge more units at the higher rate in winter and fewer in summer. The consequence was that customers were charged more higher-rate units than normal during the summer, but the same number as they would normally be charged in the winter. Npower accepts that this resulted in some customers being charged more than 4,572 units at the higher rate over a full calendar year, but not over the seven-month tariff year.
An npower spokeswoman says: “We accept that Mr Orr and Mr Wheater have both been charged more than 4,572 units of gas at the higher rate in a calendar year. However, we think this is counterbalanced by our price reductions, which took place at the same time. Overall we think they are probably better off.”
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Beware of Npower, even if you are not a customer! As powergen customers we received bills from Npower too for 2 years (despite them accepting they were not our supplier many times). After receiving various threatening letters, including bailiffs, a third Energywatch intervention finally ended it!
Tony, Sheffield,
I am with Npower and was going to move so they allowed me to change from SOL v4 to SOL v10 which is much cheaper but I believe SOL v10 is no .onger available and now selling SOL v11 costing much more, I bet we are fetting ripped off in summer periods being low users, it's time goverment action.
Contax, Brigg, England
I was charged £3000 for the last 6 months.... I am a single mum with 3 children one at university so am definately thankfull of all these comments
heather oakley, barnet, herts
I was charged 6519 higher rate units between 30/01/07 and 29/01/08. Also watch your bonus-I only received £75 not £80. Have complained by email and letter-all sorts of excuses from npower, none satisfactory. Have now told them to refund the £56 overcharge or I complain to energywatch and switch.
Peter Banks, Ormskirk,
Another thing to watch with npower (and probably other suppliers) is that your online tariff remains competitive. They have a habit of making the existing tariff less competitive and introducing a new one at a better rate. Threaten to switch suppliers and they will put you on the latest tariff!
Peter Banks, Ormskirk,
I was so unimpressed by Npower and thay way they calculate usage/billls that I changed to Ebico and have never looked back ! One cheap tarrif , no seasonal weighting, no nonsence.
Jon White, Harrogate,
N Power are a company that I would not deal with at any price as they tricked my manager into signing a contract which they said was just an acknowledgement of there terms etc. It took us two years to resolve the matter.
peter Adams, sittingbourne, uk
I was charged 6395units at the higher rate in year to April 2008 an overcharge on 1823 units. I telephoned npower and did receive a reply in line with what has alredy been reported to you. I am not happy and will tell them so. I will be changing as soon as I receive my direct debit bonus of £80.
David Sweet, Clevedon,
If we accept that a tariff year is the gap between price changes there is the real possibility that prices could be changed every 2 months or so and the higher rate would apply to EVERY unit consumed. I have yet to receive any response to my own claims for a rebate of excess charges.
Nick Pearson, Staines,
npower are, in my opinion, in breach of contract in that their unique policy among the five major energy suppliers of defining "year" as "tariff year" has never been defined in the definition section of their terms and conditions or communicated to me prior to my complaint.
P Elcome
peter elcome, milford on sea,
Their "price reductions" was. in fact, to many customers an actual price increase.What they actually did was to INCREASE the higher unit price by 3.4% and reduce the lower rate by 20.2%.I have calculated that to achieve their advertised 16% reduction, a customer would need to use around 40000 units.
Peter Northridge, Derby,
Like many of your correspondents, I started to query the proportion of units charged to my account as early as January this year. So fa, two letters to npower have produced a single response of PR garbage, I am encourage to read that other npower customers are taking the matter up.
Dr Peter Smeaton, NESTON, UK