It has been announced that the leading energy supplier Npower is to be fined in the region of £1.8 million by the energy regulator Ofgem, due to the mis-selling of contracts to its customers. The Ofgem ruling stated that Npower failed to take adequate action, after a string of complaints regarding their door-to-door salespeople.
Ofgem started its inquiry in April, with Npower dismissing six sales staff and suspending a further 17 members of the sales team in May after it had conducted its own investigation into the allegations of mis-selling contracts.
In the ruling, Ofgem said that Npower had breached the rules by failing to take adequate action. Even though there are procedures in place to deal with complaints, Npower’s managers had not used them properly.
Ofgem spokesperson Sarah Harrison added: “This decision sends a clear message to energy suppliers that failing customers and falling short of licence standards will lead to Ofgem action,”
Ofgem also went on to say that they will be proposing tougher regulations for doorstep sales, to discourage the mis-selling of contracts in the future.
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