Npower forced to confess mistake
MA intervenes in row over huge price rises threatening licensee
Under-fire electricity supplier Npower has admitted another mistake that wrongly tied a licensee into a contract at inflated rates.
As energy regulator Ofgem launches a probe into Npower's sales tactics, the firm apologised to Graham Bell for saying he must pay almost double for the next 12 month.
Bell was told monthly bills would rise from about £250 to £475 from June because he didn't give the mandatory 90-day notice period for switching supplier.
He received a letter telling him of the new rates last week — 70 days before the contract starts.
But after the MA got in touch, Npower said the required notice period is actually just 30 days.
The supplier offered to reduce rates by about 10% and Bell — of the Nettleton Lodge Inn, at Nettleton, Lincolnshire — can switch suppliers if he wants.
"I'm incensed," said Bell.
"I think if I hadn't taken any action Npower would have stood by the original rates."
An Npower spokeswoman said: "The confusion over his notice period arose following a change in our billing system, which somehow electronically altered the details on his contract.
"We are conducting a review of our renewal process, looking at when we notify customers of proposed new contract prices."
Bell has written to the Prime Minister, the Chancellor and his local MP expressing his disgust.
He is also asking his customers to sign the petition against duty rises as part of the MA's Fight the Hikes campaign.
n To get involved in the campaign, visit www.morningadvertiser.co.uk
The letter highlights other factors hitting pubs, including alcohol duty hikes.
Ofgem launches Npower sales-tactics investigation
Energy regulator Ofgem has launched an investigation into the sales tactics of Npower.
An Ofgem statement said the decision follows allegations that customers have been mis-sold.
Energywatch director of campaigns Adam Scorer said: "More than 100 consumers contact us each month to complain about Npower's marketing tactics. That makes them the worst-performing supplier."
An Npower spokeswoman said:
"We were very concerned at the actions of a small number of individuals in a London sales team.
"Following an in-depth investigation by our audit team, disciplinary hearings have been scheduled for later this week.
"We have also taken steps to confirm that the systems currently in place are working effectively and we have taken the entire Npower sales force off the road to reinforce the standards that we require.
"We have also introduced additional procedures across the whole sales force which reinforce our processes."
