Gas and electricity Updated:
Npower has been hit with a £2 million fine for failing to properly deal with complaints from customers.
It is the second biggest fine that has ever been dished out by the gas and electricity regulator Ofgem to one of the big six UK firms, after British Gas was told to pay out £2.5 million in July for customer failings.
The regulator is also looking into the way that EDF Energy handles complaints.
Following the investigation by Ofgem it was found that npower had:
"Consumers have a right to expect that energy companies will comply with the standards," Sarah Harrison, Ofgem's senior partner for sustainable development, said.
"npower failed to do so and although it took remedial action, it has incurred a penalty for failing consumers. Energy suppliers now have a golden opportunity to convince consumers that they can be trusted, by getting behind Ofgem's sweeping reforms for the retail market.
"This is the quickest way of restoring consumer trust in an industry badly tarnished by poor supplier behaviour."
Ofgem said that npower has addressed and remedied all of its failings.
"The energy industry is one of the least trusted by consumers and people need to see real changes to customer service if this trust is to be rebuilt," Adam Scorer, director of external affairs at Consumer Focus said.
"Energy firms also need to view complaints as essential feedback to help them improve the service they deliver."
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