nPower Escapes Sanction As Bill Problems Ease

The energy regulator says it will not be taking immediate action against nPower as it has met its initial targets to resolve a late-billing issue that affected customers.

Ofgem made the announcement three months after it confirmed an investigation into whether the company - one of the so-called 'Big Six' suppliers - was complying with laws covering its conduct and handling of complaints.

nPower has been the most-complained-about member of the household energy market for the past two years.

Ofgem had said it risked fines of up to £300m - 10% of its sales - if its performance did not pick up.

nPower has struggled with its new billing system for the past year, with late billing leaving hundreds of thousands of customers not knowing what they owed and when as delays mounted.

The company has blamed issues with transferring customer data to a new computer system.

It said it had cut the number of delayed bills from 280,000 in mid-June to 62,000 by the end of August and had also made progress on tackling complaints, saying 82% were now resolved within 24 hours.

nPower also said that 98% of customers were now being billed on time.

Earlier this month, the company said efforts to improve its customer service contributed to a 40% fall in profits.

Sarah Harrison, Ofgem's senior partner in charge of enforcement said: "Ofgem is encouraged to see that npower has met our targets aimed at reducing late bills and we note their progress on reducing complaint numbers.

"But this is only a first step to turning round their customer service and billing performance. We will monitor their progress and continue our investigation into the reasons why npower's problems occurred".

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