npower hit with £2m fine for ‘mishandling complaints’

Ofgem said npower failed to record all details of the complaints it received, did not give customers enough details of the redress service offered by the energy ombudsman, and failed to put in adequate processes to deal with complaints.

Sarah Harrison from Ofgem said: “Consumers have a right to expect that energy companies will comply with the standards.

“npower failed to do so, and although it took remedial action, it has incurred a penalty for failing consumers.”

npower has addressed and remedied all the breaches of the regulations which the regulator identified.

It is the second a heavy fine has been levied on one of the “big six” energy firms over complaints handling in the space of four months following a £2.5m fine for British Gas in July.

The firm criticised its punishment as “disproportionate”, but Ofgem said its findings had highlighted “basic failures” in the company’s services to its customers.

The regulator said it is also currently investigating the way EDF Energy, another of the big six suppliers, handles its complaints.