Npower are to pay out one of the largest settlements agreed between Ofgem and a “big six” energy supplier…
Following failures to deal with inaccurate bills and complaints, the energy company are to pay our £26m to customers and charity.
The energy firm’s billing issues have affected more than 500,000 customers between September 2013 and December 2014.
Between September 2013 and December 2014, Npower issued more than 500,000 late bills to customers with some receiving inaccurate bills. Ofgem said many of the energy companies problems occurred following new IT systems being introduced in 2011.
During this period more than two million complaints were made by customers with the worst affected not receiving bills for more than a year.
Dermot Nolan, Ofgem chief executive told BBC News: “Npower failed its customers. Not only have its billing and complaint handling procedures been chaotic, it treated many of its customers poorly, which is completely unacceptable.
“Npower’s management failed to act quickly enough to protect its customers when things went wrong with changes to its IT system.”
As a result of the failures, Ofgem has agreed targets with Npower for it to improve its billing and complaints handling. If the company fails to meet the targets, they will have to stop all UK sales and advertising until they are met.
