Energy suppliers Npower agree to refund customers - 05/10/2010
Energy suppliers Npower have announced some of their gas customers will be eligible for a refund.
Consumers who used the services of Npower in 2007 and paid too much for their cheap energy are set to receive a payout of between £1 and around £100 after Consumer Focus worked with the company to come to a fair outcome.
The consumer watchdog lobbied for reimbursement for customers affected by the change in the way Npower applied its charges for the first block of higher-priced gas units that households pay, after it was found that the energy suppliers did not communicate the changes effectively to their users.
Primary block units are the first gas units to be used each month and are charged at a higher rate to help the company pay for the fixed costs of supplying cheap energy to households.
Some 1.8 million people will be affected by the outcome, which will see Npower refund £63 million for gas payments, excluding VAT and interest.
The company apologised for the "complexity of the changes we made [which] caused confusion" and said it will be contacting all affected customers in the next two months.
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