Npower’s move could have a significant impact on the energy bills of customers currently on the Sign Online 14 tariff and greatly increase npower’s profitability for these customers,” says Gocompare.com.
Instead of moving Sign Online 14 tariff customers to the newer Sign Online 17 tariff and giving them a better energy deal, Gocompare.com says it appears npower has chosen to move them to a completely new and more expensive tariff.
It’s not clear whether npower are also withdrawing other cheaper tariffs from existing customers,” says Gocompare.com.
Using one Sign Online 14 customer’s example the new tariff would increase their energy bill by 24 per cent when npower could reduce their energy bill by 20 per cent by switching them to the Sign Online 17 tariff.
Worryingly, says Gocompare.com, npower is justifying this action by claiming it is a requirement of their supply license to change the rates of some of their online tariffs to match their standard ones.
As far as Gocompare.com is aware, the terms of npower’s supply licence – or any other supplier’s licence for that matter – does not create any obligation to align online tariffs with a standard tariff.
“In the last 24 hours npower customers on the Sign Online 14 tariff have been receiving letters informing them that their existing tariff is being withdrawn and that they will automatically be moved to a new tariff,” said Mark Greening, Head of Utilities at Gocompare.com.
“Unfortunately npower appear to be using this as an opportunity to hit some of their existing customers with significantly higher bills.
“Imposing higher energy costs on customers under the misleading guise of a regulatory requirement is pretty shameful behaviour from npower and we would strongly advise all npower customers to be on the lookout for these tariff changes.”
Npower & Equity Release
What Is Equity Release?
Equity release is the use of financial arrangements that provide the owner of a house, or other property, with funds derived from the value of the property while enabling them to continue using it.
How Does Equity Release Work?
Equity release is aimed at homeowners aged 55 and over. It allows you to take some of the value of your home as cash.