Npower coughs up £3.5m Ofgem fine for 'vulnerable' customers

20 December 2013

npower_0 Npower has agreed to pay a £3.5m fine for breaching sales rules, said regulator Ofgem and the money is going to go toward helping "vulnerable consumers". The regulator hit The Big Sixer with a penalty after they found Npower had breached rules which outline how deals can be flogged, door-to-door and on the phone.

Ofgem added that Npower have "remedied all the issues raised" and will direct the money towards poorer customers. What happened was, Npower's sales processes meant that customers were not able to compare similar offers from rivals in a fair manner.

"Ofgem will continue to hold companies to account to ensure rules to protect energy consumers are met and that the market works for consumers in a simpler, clearer and fairer way," said Sarah Harrison, Ofgem's senior partner in charge of enforcement.

Npower chief executive Paul Massara responded: "We've worked very closely with Ofgem as they've investigated these previous issues. It's good to draw a line under this, so we can focus on our goal of becoming number one for customer experience by the end of 2015."

So, if you're a vulnerable Npower customer, you'll be getting a payment as the company has promised to pay at least £25 to each of its "warm home discount" customers with either an account credit or a pre-payment meter top-up.

TOPICS:   Utilities

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