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UK watchdog probes RWE npower over mis-selling claims

23 April 2008 - Ofgem, the energy watchdog, today launched a formal investigation into RWE npower and the methods the UK's fourth-biggest gas and electricity group uses to sign up customers.

The regulator announced the investigation after The Sunday Times exposed the questionable sales techniques that npower employees use to sign customers to gas and electricity contracts.

The Ofgem investigation will examine potential breaches of licence obligations by which npower, which is owned by RWE, of Germany, must abide.

Ofgem said today: "This investigation is being carried out under Ofgem's powers to enforce licence conditions. The decision to investigate follows recent allegations that npower sales representatives have been mis-selling energy contracts to customers."

This year its parent, RWE, reported a 40 per cent increase in its operating profit to €724 million ($1.16bn).




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