Energy regulator Ofgem today announced that the big six supplier had agreed to pay out £3.5 million to vulnerable energy users, as a result of being found guilty of breaching sales regulations over the phone and during door step selling.
The breaches all relate to activities which took place before September 2012.
Another big six supplier, ScottishPower, paid an £8.5m penalty in October 2013. SSE and EDF have also made similar payments in recent times, and E.ON is currently being investigated by Ofgem.
‘£3.5million payment will be used to help vulnerable consumers’
Tom Lyon, energy expert at uSwitch, said: “While bad news that yet again consumers have been let down by an energy company, we applaud the stance taken by both npower and Ofgem.
“We welcome the fact that the £3.5million payment will be used to help vulnerable consumers and hope that, as these types of investigations come to a head, the industry is able to draw a line under the behaviour of the past and focus on rebuilding trust with consumers.
“The news also serves as a reminder of why people should always seek independent, impartial and whole-of-market advice before switching. This is the only way for consumers to ensure that they are getting the best deal for their needs.”
‘Good to draw a line under this’
Paul Massara, CEO at npower, said, “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.”
Sarah Harrison, Ofgem’s senior partner for enforcement, said: “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.”