Npower fined £1.8m over mis-selling

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Jamjar
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Npower fined £1.8m over mis-selling

Post by Jamjar » Mon Dec 22, 2008 4:40 pm

Hee, hee, they just keep getting it wrong, don't they? :rolleyes:
Npower is to be fined £1.8 million after it failed to take sufficient action to prevent mis-selling of contracts to customers.



Energy regulator Ofgem found that npower breached conditions of its supply licence by failing to take adequate steps following complaints from customers about visits by the company's doorstep salespeople.


Although npower had procedures in place to follow up complaints, company managers had not done enough to apply and improve them, allowing incidents of mis-selling to proceed unchecked, Ofgem ruled.


As a result, Ofgem concluded that Npower had failed in its duty to ensure that it had taken all reasonable steps to fix the matter.


Ofgem's managing director of corporate affairs, Sarah Harrison, 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.


"Mis-selling undermines consumer confidence, but getting it right on the doorstep can help customers make effective choices in the energy market. This is why Ofgem's energy supply market probe committed to strengthening the doorstep selling rules."


The regulator said the penalty "could have been much higher", but reflected the nature of the licence breach and the prompt action taken by Npower.


Ofgem said it would put forward tougher rules next year to help tackle mis-selling.


Its recent probe into the energy supply market found that rules governing suppliers' sales and marketing activities needed to be strengthened to help customers make well-informed decisions in response to direct sales.


New measures could include an obligation for salespeople to give written quotations comparing their offer with a customer's current energy bills, Ofgem said.


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Fined £1.8 million eh? Well, I suppose they could send out false, mis-leading bills out again to unsuspecting customers, they'd have their money back in no time! :rolleyes:


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