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Npower fined £1.8m for 'cowboy' selling
Jonathan Prynn, Consumer Affairs Editor22 Dec 2008
Energy supplier Npower has been hit by a £1.8 million fine for "cowboy" doorstep misselling of gas and electricity in London.
An investigation by the regulator Ofgem found how customers were tricked into switching to Npower by a rogue sales team.
Tactics used included targeting customers with poor English or learning difficulties or the very old. Representatives also misled customers by claiming to be from "the electricity board" rather than a single company and by claiming they were not selling anything.
One salesman told new recruits: "If you're going to be very honest we can't sell anything."
A 17-strong sales team was dismissed by Npower once the scams were brought to light in a newspaper report. However, it also emerged that the German-owned company had initially failed to respond to customer complaints.
Ofgem's managing director of corporate affairs Sarah Harrison said: "This decision sends a clear message to energy suppliers that failing customers and falling short of the licence standards will lead to Ofgem action."
Reader views (11)
When a salesman from npower knocked on our door last week he said that 'a survey in the area' was being undertaken as neighbours had complained that electricity services were being interrupted. It was a misleading ploy and typical of the the low tricks Npower use to gain business - not a good company.
- Bethany, London, 23/12/2008 15:30
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I was sales person working on behalf on Npower earlier in the year and we were forbidded to sell to vunerable people/customers if we did we would lose our badge utimatley our job.
The truth is if you listen properly then you can respond and see if there is a catch...the only catch was some people did save money and some didn't
- Versatile, London, 23/12/2008 09:38
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Perhaps we should go back to ONE Electricity Company and ONE Gas company! The cost of all these sales men and the admin necessary to transfer our accounts, could go into reducing the end cost to us!
- Andrew, Harrow, 22/12/2008 22:50
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I used to work for the call centre for a very big energy supplier. They had a calculator which you could use to work out whether the customer would be better or worse off changing. Trouble is, they were always worse off changing so lots of the "top performers" would just lie outright! If you were not prepared to lie and rip off the customers, the managers would try and make your life a misery. I left to pursue a more honest profession - banking!
- James, London, 22/12/2008 21:08
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£1.8 million is nothing to NPower, the revenue and profit from the misselling is very likely a lot more. Why is this fine so generous?
- George, London, UK, 22/12/2008 19:53
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I had one of these deceptive conmen from npower in September, unsolicited at our door, trying to get me to sign purely that he had been to us. I complained to npower which, as far as I know, took no action.
The £1.8 million fine should have come from the CEO and other executives pay, now they will just take the extra cost into account for their next round of price hikes.
Ofgem should be done away with, they are useless.
- Ralph, GB, 22/12/2008 19:39
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So they have been fined 1.8 milion. Great. But who gets the money. The people who were duped, or Ofgem or who. More should be done to prevent this kind of thing. One way would be to make all of the energy companies make their charges based on the same criteria. To make comparison a lot easier.
- John Holt, Witham, Essex, 22/12/2008 18:06
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What the hell ie the point of fining these companies? All they do is put up their prices to cover it, so we, the public, and up paying it. AGAIN!
- L.Taubler, London / UK, 22/12/2008 17:50
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The fine is not enough.
I recently had someone come to my door and ask me to 'sign and confirm that my flat is not on the ground floor, as listed'.
Since he'd had to walk up the stairs to knock, you'd think it would plainly obvious, and he most miffed when I refused! I smelt a rat and sent him on his way... god knows what would have happened if I'd been stupid enough to sign!
- K, London, 22/12/2008 17:10
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Any news on the Ofgem investigation into NPower's 7 month year yet? Millions of customers were possibly fleeced to the tune of £80 each if they are found guilty.
- Bob, Cheam, 22/12/2008 17:02
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This is not uncommon - I had a guy knock on my door and give me the usual spiel, saying he was doing a survey as to whether I was satisfied with my energy supplier, and no he wasn't trying to sell me anything.
Strangely, when asked, he admitted to being from Scottish Power, and yes he would sign me up to them if I wasn't happy with my current arrangement. The things you see when you haven't got your gun - as my old DAd would say.
- Barry Chapman, Welwyn England, 22/12/2008 15:19
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