Auditel Consultant:
Nick Beaumont-Jones

Npower to refund customers £63 million

11 Oct 2010 | Filed under: Industry Comment

Utility Week report that Consumer Focus has welcomed npower’s decision to refund gas customers to the tune of £63 million plus VAT and interest. The payment, which will see around 1.8 million households receive £35 on average, brings closure to the long running dispute between the supplier and its customers.

Npower changed the way it charged for gas in 2007. Following an Ofgem investigation, the firm last year repaid an average £6 to 200,000 customers. However, Consumer Focus, customers and MPs weren’t satisfied with the payment. While Ofgem said it had no power to revisit the issue, the customer watchdog did not give up and urged npower to review its billing records. The firm will now contact all affected customers – including those which have subsequently changed supplier – within the next two months and make payments, plus £3 million in VAT and £4 million interest, to all those eligible.

Npower said it was sorry for the confusion and pointed out that it has since invested to improve bill clarity and plans to invest £200 million in customer service systems.

Blogger’s note – confusion about billing information is a constant cause for concern with my clients, especially where gas and half-hour electricity bills are concerned. Perhaps one day Ofgem will bring about a clear and standardised bill layout which we can all understand!