Ofgem fines Npower £1.8 million for misselling
Energy watchdog Ofgem has fined Npower £1.8 million for failing to take steps to prevent misselling of energy contracts to customers.
Npower has been found guilty of breaching a supply licence condition by failing to take adequate steps following complaints from customers about visits by the company’s doorstep sales people.
Ofgem agreed that Npower had procedures in place to follow up complaints but judged that company managers had not been proactive enough in applying and improving them. As a result, incidents of misselling carried on unchecked.
Ofgem managing director of corporate affairs Sarah Harrison says: “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.”
The regulator said that the level of penalty reflects the nature of the licence breach and the prompt action taken by Npower. Ofgem has been carrying out a market investigation into energy supplier selling tactics over the past few months.
It is to put forward tougher rules governing doorstep sales next year which will help tackle misselling. New instructions could include, for example, an obligation for sales people top provide written quotations comparing their offering with a customer’s current energy bills.”
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