Ofgem found that the company had failed to record all the required details of complaints and did not put in place adequate policies for dealing with complaints in “an efficient and timely manner”.
Sarah Harrison, Ofgem’s senior partner for sustainable development, 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.”
She added that the UK energy industry had been “badly tarnished by poor supplier behaviour”.
Npower has now addressed all the regulatory breaches.
In July Ofgem fined British Gas £2.5m for breaching the same consumer regulations and now the regulator is investigating the complaints procedures of EDF Energy.