npower customers urged to cash in on outstanding refunds

Consumer Focus is urging customers who have yet to take advantage of their refund from npower for gas bill overpayments in 2007, to claim their share of more than £20 million still up for grabs.

On 1 October 2010 npower and Consumer Focus announced that the firm would be offering £70 million of refunds to customers.  Since then almost 1.2 million customers have been paid over £51 million in total and the consumer watchdog is now urging the remaining 700,000 people who have yet to claim their refund to make sure they get the cash they are entitled to. With payments of up to £100, and an average of £35 plus VAT and interest, the payment could make a big difference to cash-strapped consumers.

Christine Farnish, Chair of Consumer Focus, said: ‘It is great news that over fifty million pounds has now been put back into the pockets of over a million people by npower.  We want to encourage all those consumers still entitled to a refund to get the cash that's rightfully theirs.

‘We urge anyone with a payment letter at home from npower to take it to their local post office now and get their refund. Anyone else who thinks they may be due a refund should call the npower helpline on 0800 975 7938 to see if they are eligible.'

Volker Beckers, Chief Executive Officer of npower, said: ‘We are working closely with Consumer Focus to maximise the number of eligible customers and former customers who claim their payment. We are still seeing redemptions running at more than £1 million per week and we hope that those who have unredeemed letters will redeem them soon.'

npower is offering repayments to 1.89 million households in total. These customers are likely to have paid for more higher-priced gas units than they expected to in 2007 after the company changed how it charged for these units but did not communicate the changes effectively. npower has worked closely with Consumer Focus to ensure a fair amount is paid back to the customers affected.

An encouraging 63% of the 1.89 million customers affected have already taken-up their refund and more than 70% of the maximum cash amount available has been claimed.  Claim levels vary across the country with the lowest in London (47%) and highest in South Wales (69%) and the South West (also 69%),  (please see the table in the footnotes for a full regional breakdown).

npower have written to all existing customers and to the last known address for all former customers. They have offered payment through a bar-coded letter that can be cashed at any Post Office.  Payment letters to the value of £60 million have been sent to 1.5 million customers. Following a reminder letter to current customers 82% of people who have received a letter have taken up their refund. Consumer Focus is urging anyone who has been contacted by npower to make sure they cash in their payment at the Post Office as soon as possible, as the payment letters are only valid for six months from the date of issue.

Many former npower customers who were affected have moved house as well as supplier, and are much harder for the firm to contact about the refund available. Therefore unsurprisingly a lower proportion (49%) of previous npower customers, have taken-up their refund.

The watchdog is urging people who were customers of npower in 2007, but have since left the supplier or  moved house, to call npower's helpline on 0800 975 7938 or visit npower's website to find out if they are entitled to a refund. These consumers are hardest for npower to contact and are most at risk of missing out on their refund. Consumers can also find further information about the npower repayments at consumerfocus.org.uk