May 14, 2008
Npower dismisses staff as Ofgem launches investigation
Energy giant Npower has dismissed 6 staff from its sales department for misleading customers . 17 other staff are currently suspended pending further investigations.
Npower staff were alleged to have duped customers into signing contracts without their full knowledge. Customers were also misled over the energy firm’s tariffs. Industry regulations make it clear that customers must be told if they are entering into a contract
The firm’s actions have been brought to the attention of Ofgem, the energy regulator, and an investigation was launched on 22nd April. Npower now faces the real prospect of a heavy financial penalty if Ofgem finds evidence that the company has been misrepresenting its products.
Npower have stated that their staff are undergoing rigorous training to ensure their sales practices meet the regulatory standards that are expected within the energy industry.
Previously, London Electricity were fined £2 million by Ofgem in 2002 for mis-selling their products to customers.