Npower to pay £3.5m to vulnerable customers - Gas and electricity - News - Moneyfacts


Npower to pay £3.5m to vulnerable customers

Npower to pay £3.5m to vulnerable customers

Category: Gas and electricity

Updated: 23/12/2013
First Published: 23/12/2013

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 It is now over 6 months old so the content may be out of date.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 agreed to pay a total of £3.5 million to its most vulnerable customers, after an investigation by Ofgem found serious failings in the firm's sales processes and clear breaches of its marketing licence.

The investigation focused on Npower's sales tactics and the information used when encouraging customers to switch suppliers. It was found that they breached several rules regarding doorstep and over the phone selling, including failing to get sufficient information about a customer's current consumption to enable them to make an informed decision, and even basing price comparisons on tariffs that the customer wasn't currently signed up to.

This form of mis-selling came at a time when Npower was reviewing its sales processes, and the company has admitted their practices failed to live up to the standards expected by Ofgem. As a result, they've pledged to make a payment of at least £25 to all customers who are Warm Home Discount payment recipients, totalling a £3.5m package to help struggling families.

Sarah Harrison, Ofgem's senior partner in charge of enforcement, commented:

"Npower has done the right thing by stepping forward and recognising that, whilst it was making changes to improve its sales processes, weaknesses remained which affected consumers' ability to compare supplier offers fairly.

"These issues have been fully addressed by Npower and Ofgem welcomes the company's actions and its agreement to pay £3.5m to directly benefit vulnerable consumers."

Npower has said all processes have been adequately changed and all shortcomings remedied, with the issues having ceased by September 2012.

What Next?

Beat the prices rises and save up to £320 on your gas and electricity

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 Any products featured may be withdrawn by their provider or changed at any time.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.