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Two million npower customers set for refund

Two million npower customers set for refund

Category: Gas and electricity

Updated: 01/10/2010
First Published: 01/10/2010

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 It is now over 6 months old so the content may be out of date.

Almost two million npower customers who overpaid for gas in 2007 are to receive a refund.

The energy company said it will be paying back around £70 million to a total of 1.8 million people.

All eligible customers will be contacted in the next two months even if they are no longer with npower.

Payments will average £35, but will range from £1 up to around £100.

In 2007 the firm changed the way it applied charges for the first block of higher priced gas units which its customers pay.

However, npower has admitted that the change was not communicated effectively to its customers.

"We're sorry that the complexity of the changes we made caused confusion," said npower in a statement. "We're now doing all we can to improve our communication with customers."

The move has been welcomed by Consumer Focus, the watchdog with whom npower worked to achieve the outcome.

"Consumers have been waiting a long time for this announcement and we are pleased with the final result," said Mike O'Connor CBE, chief executive of Consumer Focus.

"Sixty three million pounds plus VAT and interest for consumers is an excellent outcome and shows a major commitment from npower to its customers.

"A huge amount of work and collaboration has resulted in the right thing being done by npower for its customers and we welcome this."

It's always worth checking whether you can get a better gas and electricity deal than the one you are currently on.

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