£63m refund from npower
Energy company npower is to pay a total of £63m in refunds to its customers. The decision follows "confusion and controversy" over a new payments system introduced in spring 2007.
The company said "it is now clear that we did not communicate all the changes well and, as a result, some customers were convinced they had been overcharged".
Some 1.8 million customers will be eligible for refunds averaging £35 each. The company will be contacting all parties to inform them.
Following customer complaints, energy regulator Ofgem launched an enquiry into npower's billing last year, resulting in a £1.2m refund. However, further investigation prompted by the watchdog Consumer Focus has resulted in this additional refund.
The company said: "Recognising that confusion has continued, especially around the primary block, we have worked closely with Consumer Focus to find an answer to these concerns.
"We’re sorry that the complexity of the changes we made caused confusion. We’re now doing all we can to improve our communication with customers."
