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| Npower fined for doorstep sales | |
| (20 minutes later) | |
| The energy regulator Ofgem has announced that it will fine energy supplier Npower £1.8m. | The energy regulator Ofgem has announced that it will fine energy supplier Npower £1.8m. |
| It said the company had not taken sufficient action to prevent the mis-selling of contracts to its customers. | It said the company had not taken sufficient action to prevent the mis-selling of contracts to its customers. |
| Npower dismissed six members of its sales team in May following its own investigation into allegations that potential customers had been misled. | Npower dismissed six members of its sales team in May following its own investigation into allegations that potential customers had been misled. |
| Rules state that customers must be fully aware that they are entering into a contract. | |
| Insufficient action | |
| Ofgem ruled that Npower had breached the conditions of its supply licence by failing to take sufficient action after complaints from customers about door-to-door salespeople. | Ofgem ruled that Npower had breached the conditions of its supply licence by failing to take sufficient action after complaints from customers about door-to-door salespeople. |
| It said that Npower had procedures in place to follow up the complaints, but that managers had not applied them properly. | It said that Npower had procedures in place to follow up the complaints, but that managers had not applied them properly. |
| As a result, mis-selling went unchecked. | As a result, mis-selling went unchecked. |
| "This decision sends a clear message to energy suppliers that failing customers and falling short of licence standards will lead to Ofgem action," said Sarah Harrison at Ofgem. | "This decision sends a clear message to energy suppliers that failing customers and falling short of licence standards will lead to Ofgem action," said Sarah Harrison at Ofgem. |
| The regulator said it would propose tougher rules on doorstep sales next year in order to tackle mis-selling. | The regulator said it would propose tougher rules on doorstep sales next year in order to tackle mis-selling. |
| These might include forcing salespeople to provide written quotations comparing their offer with a customer's present supplier. | These might include forcing salespeople to provide written quotations comparing their offer with a customer's present supplier. |
| Ofgem began its inquiry in April into the mis-selling by sales representatives. | Ofgem began its inquiry in April into the mis-selling by sales representatives. |
| Npower suspended 17 members of staff in the same month after an undercover reporter claimed customers were being misled. | Npower suspended 17 members of staff in the same month after an undercover reporter claimed customers were being misled. |
| Npower is owned by German energy giants RWE. |