Ofgem says Npower failed to record all details of the complaints it received and did not put in adequate processes to deal with complaints. It was also accused of not giving dissatisfied customers enough information about the Energy Ombudman’s redress service.
The regulator adds that Npower has now dealt with all the regulation breaches for which it was fined.
An Npower spokesman says: “A small number of processes were not correctly adhered to. Ofgem is now satisfied that all problems have been rectified and we are fully compliant with our obligations to our customers. We have zero tolerance for this type of issue and we’ll continue to work hard to make sure our customers are put first.”
It is the second large fine levied on a “big six” energy firm by Ofgem over the mishandling of complaints in recent months, after British Gas was fined £2.5m in July.
EDF Energy is also currently under investigation from Ofgem over the way it handles its complaints.
Sarah Harrison, Ofgem’s senior partner for sustainable development, says energy suppliers now have a “golden opportunity” to convince consumers that they can be trusted, by supporting the regulator’s sweeping reforms for the retail market.
“This is the quickest way of restoring consumer trust in an industry badly tarnished by poor supplier behaviour,” she adds.