Npower hit with £2m fine for customer failings - Gas and electricity - News - Moneyfacts

News

Npower hit with £2m fine for customer failings

Npower hit with £2m fine for customer failings

Category: Gas and electricity

Updated: 31/10/2011
First Published: 31/10/2011

MONEYFACTS ARCHIVE
This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.

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:

  • failed to record all the required details of domestic and micro-business complaints received
  • failed to provide customers whose complaint it could not resolve with some key details about the redress service provided by the Energy Ombudsman
  • failed in some respects to put in place adequate policies and processes for dealing with complaints in an efficient and timely manner.

"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."

Compare Gas & Electricity suppliers

Disclaimer: Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.

Related Articles

British Gas freezes standard energy tariffs

British Gas has announced that it’s freezing its standard gas and electricity tariffs for the winter, ensuring that customers needn’t worry about price rises in the chilly months ahead. But is that enough to ensure households aren’t paying too much?

Living in a new home could cut fuel bills by half

Older homes will always be slightly more expensive to heat, with less insulation and sneaky draughts making these character-filled homes harder to heat efficiently. But did you know just how much more this could cost you? It could be double…

Standard energy tariffs are “fundamentally unfair”

We all know how expensive energy bills can be, particularly at this time of year when we’re all turning the thermostat up a notch. But what if you’re paying even more than you should be? If you’re on a standard tariff, that’s a very real possibility.
 
Close