npower fined £125,000 for latest cock-up

19 May 2014

npower-logo Those folks at npower must love the smell of fines, because they're at it again, getting hit with a penalty of £125,000 over an error in its reporting of data related to two renewable energy subsidy schemes.

This comes on the back of the news that they're the most complained about energy company in the UK. As one avid Bitterwallet reader pointed out, how they're still in business is a mystery.

Ofgem said they'd imposed the fine after npower used incorrect information to calculate the amount of electricity it supplied to customers and, under the Renewables Obligation scheme, npower (and everyone else) is required to source a certain proportion of electricity from green energy generators.

The regulator said that incorrect data used by npower resulted in the company under-reporting the amount of electricity supplied to customers.

The fine is considerably smaller than other fines that have been doled out in recent years. This time, it is because npower voluntarily forfeited Renewable Obligations Certificates, which are valued at £896,900, including annual interest at 5.5% and will make a late payment of £63,000 to account for the reporting error.

Paul Massara, chief executive of npower, said the error had been found during efforts to increase the company's controls around compliance reporting. "Accurate reporting is extremely important to us – especially in areas of compliance – and we have assured Ofgem that the changes we have made to our controls and procedures will ensure this error does not happen again," he added.

We'll see.

TOPICS:   Utilities   Government

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