Npower given two months to solve billing errors

Energy firm Npower has apologised again for customer service problems that have taken "longer than planned" to be resolved.

In a statement the company said its CEO Paul Massara had written to customers last year to apologise for the issues, which were "caused by the implementation of a new computer system".

The company says a number of measures have been introduced to tackle the problems:

• An extra 650 have been assigned since December to help resolve problems
• Late invoice and complaints data will be published monthly
• An additional £20 million will be invested this year to deal with customer service issues
• A ban on outbound telesales calls if late billing targets are missed

An investigation into "prolonged customer service failings" at Npower is to be launched, energy regulator Ofgem has announced.

Under the watchdog's new powers to enforce fair treatment of consumers, Npower now faces a financial penalty or redress payment it is found to have broken the rules.

Earlier this month Npower said it would no longer send bills to customers who left it more than six months ago if the company itself was to blame for the delay.

The move followed reports of households switching away from Npower only to receive bills months, and in some cases over a year, later.

One former customer tweeted MoneySavingExpert.com saying they left Npower last June and only recently received a bill for more than £1,000, while another said they had received a £350 bill 16 months after they left.

Read: Npower given two months to solve billing errors

By Chris Choi: Consumer Editor

It is a billing fiasco stretching back a year. You might think not getting a bill would be good news - but late billing has left Npower customers not knowing how much they owe, then getting big and unexpected bills.

I'm told 414,000 accounts have been affected. Now Ofgem are using new powers to threaten a £356 million fine and a ban on outbound telesales calls if the company fails to get this mess sorted out by the end of August.

I spoke to Npower this lunchtime, it says the problems will be resolved and no customer will be left out of pocket as a result of these billing failures.

Mind you, they said that in December - now I'm told they have put extra resources in and are committed to a solution.