Energy watchdog slams npower

Energy regulator, Ofgem, has slammed npower, identifying it as the supplier with the most work to do in improving the way it helps customers who risk falling into debt with their energy bills.

The regulator's review of energy suppliers' debt and disconnection procedures highlights best practice and identifies areas where all suppliers can make further improvements. The review, part of which was done in collaboration with energywatch, concludes that since Ofgem's last review in 2005 there has been an increased focus by suppliers on debt and disconnection issues.

The report identified however that npower was the supplier that disconnected the most customers and whose procedures for dealing with customers in debt needed to be improved to bring them into line with best practice.

Ofgem chief executive Alistair Buchanan said: "At a time when some energy suppliers have announced double-digit price rises it is vital that suppliers ensure they are offering the best support to people in debt or danger of falling into debt. This is why npower must do more to match the best practice set by the leaders in this field."

While disconnections are down significantly from the record levels seen in 2001 and suppliers have made progress in improving debt and disconnection procedures, overall since Ofgem's last industry-wide review in 2005, there are no grounds for complacency.

From 2001 until 2005, the total number of customers disconnected for non-payment of their energy bill decreased sharply - not least due to the introduction of the Safety Net for Vulnerable Customers back in 2004 by the Energy Retail Association. This ensures that no vulnerable customer is knowingly disconnected from their energy supply.

Consumer research carried out as part of the review and Ofgem's Consumer First initiative shows that despite the real improvements in suppliers' processes, some vulnerable customers aren't receiving adequate assistance.

The research also found that one particular barrier for vulnerable customers in contacting their supplier was the concern that they would be left waiting for a long time before they could speak to someone.

An assessment of suppliers' written correspondence to customers in debt was undertaken as part of this review. This highlighted that there are a number of aspects of good practice already incorporated in suppliers' letters. However, there remains scope for further improvement such as using more everyday words and symbols to ensure that the letters can be easily understood. Each supplier has been provided with individual feedback on their correspondence suggesting specific improvements.

28 January 2008 © Moneyextra.com

DEBT ADVICE - UTILITY BILLS - FINANCIAL NEWS

Our senior editor Robin Amlôt recommends you should consider taking independent financial advice before acting on any article. Please contact us for help with your individual circumstances if any assistance is required.