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Regulator Ofgem accuses Npower of 'misleading' report

A report by power supplier Npower, claiming bills will rise due to higher energy distribution costs, has been dismissed by regulator Ofgem as “misleading”, the BBC has reported.

Npower, one of the UK’s big six suppliers, said the report was designed to “shine a light” on company costs.

In it, the company argues that energy suppliers make small profits and have little control over customer bills.

But Ofgem said that some of the data used was “incorrect and misleading”.

Npower later put out a correction to its figures.

In its original analysis, Npower said the cost of transporting gas and electricity - so-called network costs - would increase from £295 per customer to £314 between 2015 and 2020.

But Ofgem, which regulates that side of the industry - and sets the price controls - said those figures were wrong.

It said that after this year, network costs per household “are expected to remain broadly flat in real terms”.

Ofgem said it offered to help Npower improve the accuracy of its numbers.

In a later correction to its figures, Npower cut its projections for increased network costs.

In its report, Npower also sought to persuade its customers that it does not make large amounts of money.

In the report, Inside the Cost of Energy, Npower said prices were not just down to the “big six” firms. More than 140 companies were involved in the industry in the UK, it said, including more than 80 who trade energy products on the markets.

Last November, the consumer watchdog Consumer Futures said Npower had received the highest number of complaints per customer.

In a three-month period in the summer, it had received 202 complaints per 100,000 customers, more than five times its nearest rival.

Last month, the company was fined £3.5m by Ofgem, for breaching sales regulations.

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