Npower to dish out £70m in refunds... sadly, not £70m each.

1 October 2010

npower-logo1Almost two million homes have been overcharged for their gas by hopeless shits, Npower.

The hapless company, who are very bailiff happy, are now making mealy mouthed apologies and agreeing to hand over £70m following a long-running row over changes it made to the way it charged customers in 2007.

Basically, the energy firm has held up its hands and admitted that they had not communicated changes well, leaving them giving out (an average of) £35 refunds to 1.8m people. They'll be getting in touch over the next two months telling current and former customers the news.

The problem started in 2007 when Npower started charging households a fixed monthly number of more expensive initial gas units, known as primary block units. Before this,  primary units were charged according to the time of year, so the price varied. As a result, some low-use customers were billed more than they were normally charged.

Npower argued that the majority of customers benefited from the changes, however, thanks to good ol' Ofgem, it turned out that this wasn't the case.

Npower initially agreed to repay 200,000 customers an average of £6 each, but Ofgem weren't having it and neither were customers, some of whom started legal proceedings. This led to Npower having to dole out more money to more people.

In a statement, Npower said: "Although the vast majority of our customers benefited from the combined effect of the changes, some, who were low users of gas, did not. We are sorry that the complexity of the changes we made caused confusion. We are now doing all we can to improve our communication with customers."


TOPICS:   Utilities   How To Guides


  • Ben
    so this explains the "we are giving you £100" refund letter I got for no reason last week. Sweet.
  • Terry H.
    [...] Npower to dish out £70m in refunds… sadly, not £70m each … [...]
  • Joe
    I think you should make it clear that it was Consumer Focus not Ofgem who 'weren't having it' Ofgem failed miserably !

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