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Friday, 5 April, 2002, 16:30 GMT 17:30 UK
Npower given reprieve over misselling
Npower
Npower has cut complaints by half in a year
Npower, the energy company, which was criticised for its doorstep sales techniques, has been given the all clear by Ofgem, the regulator.

Ofgem said that it was satisfied with the progress Npower had made, and would not take any further action against the company unless the situation deteriorated once again.

In January 2001, following "unacceptably high level of complaints about its marketing activities", the regulator imposed a series of requirements on the company.

These included improving the training of sales agents, and introducing more robust audits of sales activity.

Energywatch, the consumer watchdog, welcomed the improvements made by Npower, but said that doorstep complaints against the company - and the rest of the industry - were still too high.

Ofgem's powers

Ofgem's verdict on Npower was that the firm had "performed well" but that there was "no room for complacency."

Ofgem has powers to impose a range of sanctions, including forcing a company - as in this case - to make undertakings, taking legal action or, ultimately, stripping a firm of its licence.

Cheryl Millington, chief operating officer at Npower said: "We are pleased that the measures we have taken to stamp out bad practice are delivering results, and that we've met Ofgem's requirements."

Within a year the company had reduced sales complaints by more than a half.

Concerns remain

But Energywatch said it was concerned about these remaining complaints against Npower - and the rest of the industry.

Energywatch responded to the news with a call for a summit of energy suppliers to discuss the problem of energy misselling.

Ann Robinson, chair of Energywatch, said: "Doorstep complaints against Npower and the rest of the industry are still far too high.

Ofgem also announced that it had decided to keep a fulfilment that companies should meet certain "marketing conditions" for at least another two years.

See also:

12 Nov 01 | Scotland
Watchdog wants power firms fined
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