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Poor billing 'turns household budgets upside down'

Problems with billing systems can "turn households budgets upside down" and energy companies owe it to their customers to make any changes as smoothly as possible.

Citizens Advice chief executive Gillian Guy said:

The knock-on effect of poor billing systems can turn household budgets upside down. Many people do not have the spare cash to cover the cost of a large bill that suddenly lands on their doorstep.

While we recognise Npower is receiving more complaints because it is starting to get over some of the earlier issues, it needs to do more to stop consumers' problems escalating.

Offering repayment plans and discussing ways they can help consumers from the off will nip issues in the bud and remove the need to complain.

– Gillian Guy


Complaints about two energy companies 'double'

The number of complaints about npower and Scottish Power doubled in the first quarter of 2014, according to Citizens Advice.

Citizens Advice and Citizens Advice Scotland point to problems with new billing systems as to why there was a sharp rise in complaints.

More customers were calling the CAB to complain about their energy provider. Credit: PA

Complaints about npower rose from 306.8 for every 100,000 customers during the closing months of 2013, to 592.4 between January and March - or one complaint for every 168.8 customers.

Scottish Power complaints increased from 100.5 per 100,000 customers to 197.7 in the first quarter.

All suppliers saw an increase in complaints, although the rise was only slight for some, it added.

Npower apologises again for billing problems

Energy firm Npower has apologised again for customer service problems that have taken "longer than planned" to be resolved.

In a statement the company said its CEO Paul Massara had written to customers last year to apologise for the issues, which were "caused by the implementation of a new computer system".

The company says a number of measures have been introduced to tackle the problems:

  • An extra 650 have been assigned since December to help resolve problems
  • Late invoice and complaints data will be published monthly
  • An additional £20 million will be invested this year to deal with customer service issues
  • A ban on outbound telesales calls if late billing targets are missed

Watchdog probes Npower customer service 'failings'

Some Npower customers have reported receiving bills months after leaving. Credit: Andy Hepburn/PA Wire

An investigation into "prolonged customer service failings" at Npower is to be launched, energy regulator Ofgem has announced.

Under the watchdog's new powers to enforce fair treatment of consumers, Npower now faces a financial penalty or redress payment it is found to have broken the rules.

Earlier this month Npower said it would no longer send bills to customers who left it more than six months ago if the company itself was to blame for the delay.

The move followed reports of households switching away from Npower only to receive bills months, and in some cases over a year, later.

One former customer tweeted saying they left Npower last June and only recently received a bill for more than £1,000, while another said they had received a £350 bill 16 months after they left.

  1. Chris Choi

Npower given two months to solve billing errors

npower was criticised for telling customers too late how much they owed. Credit: Andy Hepburn/PA Wire

It is a billing fiasco stretching back a year. You might think not getting a bill would be good news - but late billing has left Npower customers not knowing how much they owe, then getting big and unexpected bills.

I'm told 414,000 accounts have been affected. Now Ofgem are using new powers to threaten a £356 million fine and a ban on outbound telesales calls if the company fails to get this mess sorted out by the end of August.

I spoke to Npower this lunchtime, it says the problems will be resolved and no customer will be left out of pocket as a result of these billing failures.

Mind you, they said that in December - now I'm told they have put extra resources in and are committed to a solution.

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