NPower Hit By Ofgem
December 22, 2008
In the news today, Ofgem have announced that they will fine NPower owned by German energy giants RWE £1.8 million. 
According to Ofgem, NPower have not tried to prevent the mis-selling of its energy supply contracts to customers.
NPower have sacked six sales staff following their own investigation in May after allegations people had been misled. The ruling states that consumers should be fully aware that they are entering a contract.
Following the mis-sells, management failed to follow up the claims of poor door to door sales staff.
Sarah Harrison of Ofgem has said:
“This decision sends a clear message to energy suppliers that failing customers and falling short of licence standards will lead to Ofgem action”.
Ofgem have said that 2009 will bring tougher regulations for door to door sales staff to try and prevent mis-selling. Suggestions that door to door sales staff should provide written quotations comparing their offer with that of their existing supplier have been mentioned.
A further 17 staff from NPower have been sacked following the investigation that began in April. Hopefully energy suppliers will begin to realise that they are not invincible. Though, it is questionable how much effect £1.8 million will have on NPower.
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