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Npower fined £1.8 million for mis-selling contracts

4:20pm GMT, Monday, 22 December 2008

Npower fined over doorstop sales. Npower fined over doorstop sales.

Energy regulator Ofgem has fined utilities company Npower for failing to sufficiently prevent the mis-selling of energy contracts.

The energy supplier has been found in breach of a supply licence condition following customer complaints about doorstep salespeople.

Npower is said to have breached the rule that states customers must be fully aware that they are entering into a contract.

Despite the fact that Npower had procedures in place to deal with the complaints after an in-house investigation in May, Ofgem ruled that the company had not acted proactively enough to remedy the situation.

As a result, the mis-selling had been allowed to continue.

Sarah Harrison, Ofgem’s Managing Director of Corporate Affairs, said: “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.”

Next year, Ofgem will propose tougher rules for doorstep selling in a bid to tackle mis-selling.

Categories:
Business, Finance, Utilities



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