Commenting on the news that Ofgem has required npower to pay a £26m consumer redress package following billing and complaint handling failings between 2013 and 2014, Tom Lyon, energy expert at uSwitch.com, says: “The sheer scale of this record settlement serves as a shot across the bows of the industry that consumers must be treated fairly.
“npower has reduced complaints by nearly 70% since the beginning of this year, but it still has a long way to go if it’s to meet tough new targets by next summer and avoid a sales and marketing ban. Trust in the energy industry is already at an all-time low and, unfortunately, today’s news will do little to address consumers’ cynicism towards suppliers.
“Today’s settlement should also serve as a warning to new suppliers entering the market, who must learn from the mistakes of the big six and operate in a way that keeps customers at the heart of everything they do. All suppliers should give consumers the quality of service they deserve or they will pay the price.”
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Launched in September 2000, uSwitch is an online and telephone price comparison and switching service, helping consumers get a better deal on gas, electricity, broadband, TV services, mobiles and personal finance products including mortgages, credit cards, car and home insurance. Last year we saved UK consumers over £278 million on their energy bills alone.
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