Npower

[pinknico]

Npower fined £1.8m by Ofgem for mis selling energy contracts. Sky News

[Amethyst]

Re: Npower

More Document Information


R/37
22 December 2008
OFGEM FINES NPOWER FOR MISSELLING OF ENERGY
Energy regulator Ofgem is to fine Npower £1.8 million after the supplier failed to take sufficient
action to prevent misselling of energy contracts to customers.
Ofgem found that Npower breached a supply licence condition by failing to take adequate steps
following complaints from customers about visits by the company’s doorstep salespeople.
While Npower had procedures in place to follow up complaints, Ofgem judged that company
managers had not been proactive enough in applying and improving them. This allowed
incidents of mis-selling to proceed unchecked. As a result Ofgem concluded that Npower had
failed in its duty to ensure that it had taken all reasonable steps to remedy the matter.
Sarah Harrison, Ofgem’s Managing Director of Corporate Affairs, said: “This decision sends a
clear message to energy suppliers that failing customers and falling short of the licence
standards will lead to Ofgem action, as well as associated reputational damage.
“Misselling undermines consumer confidence, but getting it right on the doorstep can help
customers make effective choices in the energy market. This is why Ofgem’s energy supply
market probe committed to strengthening the doorstep selling rules.”
The level of penalty reflects the nature of the licence breach and the prompt action taken by
Npower. In other circumstances, it could have been much higher. Ofgem will put forward
tougher rules governing doorstep sales next year which will help tackle misselling. As a result
of the energy supply market probe, Ofgem found that the rules governing suppliers’ sales and
marketing activities need be strengthened to help customers make well-informed decisions in
response to direct sales. This could include, for example, an obligation for sales people to
provide written quotations comparing their offering with a customer’s current energy bills.
-ends-

[enaid]

Re: Npower

Wonder if there will be any compensation for the customers that were lied too?
I was one of them.