Energy firm hit with record fine
Energy supplier Npower has been ordered to pay a record fine by the industry regulator over inaccurate billing and generally poor customer service.
Utilities watchdog Ofgem announced today that Npower had been issued with a £26m fine after it emerged that more than half a million of its customers were affected. Npower customers were subjected to "significant distress and worry", Ofgem said.
The announcement was welcomed by consumer campaigning charity Which?, as well as price comparison sites including Uswitch.com.
"Ofgem is right to dish out a hefty fine as npower has clearly failed its customers. Time and again we’ve found the biggest suppliers aren’t getting the basics right on customer service," said Which? executive director Richard Lloyd.
According to Ofgem, many of Npower's customer service problems can be traced back to the introduction of a new IT system by the company's parent firm RWE in 2011.