Ofgem stated that the fine was incurred as the company failed to handle customer complaints in the correct manner; the indiscretion of mishandling the complaints includes failing to record all details of the complaints made and failing to implement a process to deal with complaints.
Senior partner for sustainable development for Ofgem, Sarah Harrison commented on the decision to issue npower with a fine.
She said: "Consumers have a right to expect that energy companies will comply with the standards.
"NPower failed to do so and, although it took remedial action, it has incurred a penalty for failing consumers."
The fine follows the record penalty (Â£2.5 million) imposed on British Gas back in July, also for failing to deal with customer complaints correctly.
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