Npower (UK)

Infobox Company
company_name = RWE npower
company_
company_type = Public limited company
foundation = 2002
location = Swindon, England
key_people =
industry = Energy
products = Gas and Electricity
revenue =
operating_income =
net_income =
num_employees = 11,500
parent = RWE
subsid =
homepage = http://www.npower.com
footnotes =

npower is a UK based electricity and natural gas supply company owned by RWE of Germany.

History

The company was originally part of National Power, one of the generating companies created from the break-up of the CEGB. In 2000 National Power went on to split into two separate companies; Innogy, which included the UK based operations such as the npower supply business and International Power which included the international operations of National Power.

Innogy then went on to purchase the Regional Electricity Company Yorkshire Electricity in 2000. It later disposed of the distribution side of Yorkshire Electric to CE Electric UK in exchange for the supply business of Northern Electric. Innogy itself was taken over by the German utility giant RWE in 2002 and renamed RWE Npower plc with all the supply business adopting the "npower" brand.

Telecom Plus

In November 2005 Telecom Plus CEO Charles Widoger warned that high energy prices had resulted in significant losses in its gas business. In February 2006 Widoger sold 12.9 million shares in his personal holding in the company to npower (equivalent to 19% of the company), as well as the entire supply side of the business, in light of mounting losses in the rising price energy market. Telecom Plus provide nPower with management services, such as billing, customer service, metering, debt collection and administration (ie - the company retains the customer relationships), in return for a commission on energy used by the customers. The deal was made retrospective to 1 January 2005, and could result in npower controlling 29% of the company. [ [http://www.digitallook.com/news/623512/Big_gas_losses_force_Telecom_Plus_to_sell.html Telecom Plus (TEP) News - Big gas losses force Telecom Plus to sell ] ]

Operations

npower operates a number of coal, natural gas, oil-fired and renewable energy power stations across the UK, with coal and gas accounting for 81% of their output as of 2005. [ [http://www.rwe.com/generator.aspx/rwe-npower/group-structure/property=Data/id=238054/corporate-profile.pdf RWE Gestaltungselement "Quadrate" in Corporate Broschueren ] ]

The company's main offices are in Swindon, Wiltshire. npower has around 9,500 employees across its departments and an annual turnover in 2005-6 equivalent to US$5.6bn. [ [http://www.energy-business-review.com/companyprofile.asp?guid=13D486ED-C0F4-4783-85CA-63CF27BF8821 RWE npower - Company Profile - Energy Business Review ] ]

The company also owns Aberthaw Power Station in the Vale of Glamorgan in south Wales, as well as operating Tynagh CCGT in the west of Ireland.

Overcharging scandal

In 2008 it was claimed that Npower had allegedly overcharged some of its gas customers. The company - for users not paying a daily standing charge - charges a variable rate for the first 4572 units on an annualised cycle. An alternative method of profiling is to spread the units throughout the year. Npower adopted a 'sculpting' policy that apportioned higher usage to the winter and lower to the summer months, apportioning the 4572 units over the cycle. After starting the policy they changed it back again, with the result that the total number of units charged at the higher rate in a 12-month period year was higher than agreed, which was reduced by the reduction in the unit rate charged for units above the primary rate charge with the result that some customers were possibly overcharged about £90.00 each. [http://www.guardian.co.uk/money/2008/mar/16/householdbills.consumeraffairs]

Brand identity

npower has two mascots, which feature on all recent advertisements representing gas and electricity. They are two small glowing "Orbs" with eyes and feet, one yellow (Electricity Orb) and one blue (Gas Orb). npower gives soft toys resembling the Orbs to new customers.

British Gas also has a pair of glowing mascots. While the Orbs are circular and mute, the British Gas mascots are shaped as gas flames and talkative.

npower's TV advertisements feature the song, "Happy Together" by the Turtles, and more recently a cover version of the same song by Johnny Panic.

Sponsorship

npower are very active in community sponsorship and have backed the England cricket team's home Test matches.In addition they currently sponsor Worcester Warriors Club (which is less than 100 yards from npower offices) and the Welsh team The Ospreys rugby team.

ee also

*Energy policy of the United Kingdom
*Energy use and conservation in the United Kingdom
*Green electricity in the United Kingdom

References

External links

* [http://www.npower.com Company website]
* [http://www.fuelmix.co.uk/npower_fuel_mix_2006.htm npower's fuel mix for 2006]
* [http://www.fuelmix.co.uk/npower_fuel_mix_2007.htm npower's fuel mix for 2007]