Ofgem fines Npower GBP2m for failing consumers

Mon, 31 Oct 2011
 
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Npower, one of the UK’s ‘big six’ energy firms, has been hit with a £2m fine for failing to deal with customers’ complaints properly.

Energy regulator Ofgem said Npower breached regulations governing the handling of complaints as it failed to record all the required details of domestic and microbusiness complaints and failed to provide dissatisfied customers with key details about the Energy Ombudsman's redress service.

The company, which provides gas and electricity to nearly seven million homes, also failed to implement adequate policies and processes for dealing with complaints in an efficient and timely manner.

Sarah Harrison, Ofgem’s senior partner for Sustainable Development, said: "Consumers have a right to expect that energy companies will comply with the standards. Npower failed to do so and although it took remedial action, it has incurred a penalty for failing consumers."

A spokesman for NPower said: "We are very sorry, we let our high standards slip on this occasion."

"A small number of processes were not correctly adhered to. We have zero tolerance for this type of issue and we'll continue to work hard to make sure our customers are put first."

Earlier this year Ofgem fined the nation's largest energy supplier, British Gas, £2.5m for the same offence, and the regulator said it was also investigating the way EDF Energy handles complaints from its customers.

"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," added Harrison.

"This is the quickest way of restoring consumer trust in an industry badly tarnished by poor supplier behaviour."