npower's £3.5m payout for breaching sales practise rules

npower has agreed to pay £3.5 million to help vulnerable customers after it was found by the regulator to have breached rules over energy sales practices on the doorstep and over the phone.

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npower: We made some mistakes and put things right

Energy firm npower has issued an apology after it was found to have breached energy sales rules, saying, "We made some mistakes and we've put things right".

The firm's website states: "After a thorough investigation, it is fair to say there were some requirements of our licence conditions we didn't meet at that time. We're sorry.

npower said around 125,000 customers who receive the Warm Home discount will be given at least an extra £25. Credit: Press Association

"We've identified the relevant issues and addressed them completely, putting right what was wrong and learning valuable lessons in the process.

"We'll be giving at least an extra £25 to around 125,000 customers who already receive the Warm Home discount".

Ofgem: npower has 'done the right thing'

Energy regulator Ofgem said npower has "done the right thing" after the firm agreed to pay £3.5 million for breaching energy sales rules.

Sarah Harrison, Ofgem's senior partner in charge of enforcement said:

npower has done the right thing by stepping forward and recognising that, whilst it was making changes to improve its sales processes, weaknesses remained which affected consumers’ ability to compare supplier offers fairly.

These issues have been fully addressed by npower and Ofgem welcomes the company’s actions and its agreement to pay £3.5m to directly benefit vulnerable consumers.


npower 'fell short of Ofgem's tougher marketing rules'

Energy firm npower "fell short of the standards set by Ofgem’s tougher 2009 marketing rules", the regulator said.

Ofgem's investigation centred on the sales processes and information used by the firm when customers were making decisions about whether to switch supplies to npower.

npower will pay £3.5 million to help vulnerable customers following the investigation. Credit: Andy Hepburn/PA Wire

The regulator said npower has "remedied all the issues raised" by the investigation, adding, "all breaches ceased by September 2012".

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