Households who switch from energy giant Npower are consistently being deprived of refunds worth hundreds of pounds.
Money Mail has been flooded with complaints from old Npower customers who have been left waiting up to six months to get back money they have overpaid.
Many have faced a catalogue of excuses, from alleged disputes with rival suppliers to computer errors, which have allowed the German-owned firm to sit on cash that belongs to customers.
Npower owed £1,174 for 148 days to Roger Handley, 65, and his wife Su, 61, after he switched to Sainsbury’s Energy. The couple, who live in Staines-upon-Thames, Surrey, had been with Npower for more than a decade.
But when their monthly bills were hiked to more than £300, they moved their electricity in November and gas in January.
In December, Mr Handley received a bill showing his account was £1,526.85 in credit.
More... Energy bills: Is it worth switching and which are the best deals? Fix your bills: how to cut your everyday costs and keep saving money all year round 'I got a better deal AND money back': Ditch your power firm to save pounds £11billion energy smart meter roll out delayed by a year because 'more time is needed for testing'He then didn’t hear from Npower until contacting it in mid- January. It said it would take up to 28 days to produce a final bill and then a further 28 days to refund his money. But in April he was still waiting.
‘It’s unbelievable — I was passed from pillar to post,’ says Mr Handley. ‘I started switching in November, so how is it that I still hadn’t been sent a final bill months later?’
When you pay your energy bills by monthly direct debit, your supplier estimates how much gas and electricity you are likely to use over the year. It splits this into 12 equal monthly payments.
This means that in summer, when you don’t have the heating on, your account will be in credit. In winter, when you use more power, you will eat into this surplus. At the end of the year, you should break even.
If you end the year in credit or move to a new supplier when your account is in credit, you should be refunded. The rules for how long your money should be returned to you vary between suppliers. Regulator Ofgem says you can ask for a refund at any time and suppliers are obligated to process this.
Npower says that as soon as it receives a customer’s final meter readings it aims to bill them within 28 days. A refund should follow in a matter of days.
But our investigation has revealed that many Npower customers aren’t receiving final bills — which allows the firm to keep hold of their cash.
Celia and Tony Stevens, from Ringwood, Hampshire, had to wait four months to get Npower to pay back nearly £500 when they switched to Sainsbury’s Energy in December.
At the time their account was £742.31 in credit. But three months later Npower still hadn’t sent a final bill.
After complaining to the Energy Ombudsman in April, they received a £477.49 refund.
Mrs Stevens, 55, who works in customer services, says: ‘It’s been a fiasco from start to finish. I must have called to chase this around 20 times. What annoys me most is that I’ve never felt as if I’ve been taken seriously.’
After their annual review in October, retired Steve and Shirley Kettle, from Skegness, were £299 in credit.
Mr Kettle, 63, asked Npower for a refund. It said if he wanted his money back his monthly bills would have to increase from £134 to £184.
So the couple switched to Scottish Power in February. But they are still waiting for a final bill.
It’s been 223 days since they first found out they were in credit and 100 since they switched.
‘How dare they hold on to this money: it’s ours,’ says Mr Kettle. ‘We should be allowed to earn interest on it — not them.’
Ron and Sam Francis (right), from Christchurch, Dorset, switched to First Utility in December, but are still waiting for Npower to sort out their old electricity bill. The retired couple received a closing gas bill that showed a £358.19 credit. They chased the money they believed they were owed, but it was March before they received a final bill. Then, in fact, Npower said they weren’t owed £358, and actually owed £154.
Money Mail has handed other complaints to the firm.
Tom Lyon, of price comparison website uSwitch, says: ‘Practices such as delaying final bills or holding on to consumers’ cash for longer than they should not only demolishes trust in the switching process, but the industry.
‘Ofgem needs to nip this in the bud and ensure that consumers aren’t made to pay for trying to get a better deal.’
An Npower spokesman says a new billing system has hit a number of customer accounts and apologises for the delays.
Its errors with the Handley and Stevens accounts have been cleared up, it says. It has offered compensation of £200 and £100 respectively.
In the case of Mr Francis, Npower has agreed to write off the £154 owed. It is still investigating Mr Kettle’s complaint.
