npower, one of the big six energy suppliers, has stated that it will continue to feel the negative impacts of its billing problems until the end of 2016. The company says that the issues have lowered their profits and will continue to do so until the end of next year.
The energy giant also revealed that it had lost many customers to its competitors and had to start offering more competitive deals in an effort to get them to extend their contracts.
According to RWE, npower’s German parent company, its profits have fallen by 60% down to Ä53m in the first half-year.
They recently made a change to their billing system which resulted in a large amount of errors over the last few years. Some customers where billed too many times while others received no bills at all. Back in 2014 npower claimed that they were resolving these issues, as their profits were dented by 38%.
However in July, the Energy Ombudsman demanded that npower supply free power to those customers whose complaints had not been dealt with within the required time period.
Ofgem also released official figures that showed that npower received the highest number of complaints out of any energy company in the UK. As a result of this it has admitted it is struggling to keep customers:
“We were often only able to retain residential customers with expired contracts by offering them new contracts with more favourable conditions.”
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