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Npower to pay £1million to vulnerable consumers

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Npower has apologised and agreed to pay back £1 million to vulnerable consumers after it was criticised for poor service.

Ofgem, the energy regulator, said it was concerned by the number of customer complaints Npower receives, which have shown a sharp increase in the past year.

The £1 million will be placed in a fund for vulnerable consumers, with half of that money going to Macmillan Cancer Support.

Looking to reduce your energy bills or find an energy supplier with better customer service? Use Which? Switch to compare energy prices and find the best energy deal for you.

Energy bill problems

In a separate story many Npower customers have experienced problems with billing, with many complaining that they hadn’t received bills for months, that bills were delayed or were reduced leading to high levels of debt.

In a letter to customers from chief executive Paul Massara, Npower explained that the problems are due to the installation of a new computer system and promised that consumers will be offered longer repayment periods so they will not be left out of pocket. 

Npower said it will contact affected consumers directly. However, if you feel you have been impacted or financially disadvantaged by billing problems you can call their customer service line on 0800 073 3000.

Npower rated as worst energy company

Npower supplies around 6.5 million UK homes and businesses and also produces around 10% of the electricity used in the UK. 

In response to Ofgem’s concerns about its customer service, Npower has outlined an action plan to address areas of concern including problems setting up customer accounts, direct debit payments and billing.

In the 2013 Which? Switch survey of more than 10,000 members of the public, Npower was rated as the worst energy company, scoring just 39% in customer satisfaction.

It scored poorly in all categories including value for money, customer service and dealing with customer complaints.

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