RWE the German energy giant and the owner of Npower reported the losses of £99m to the markets for the year end. This comes as a stark contrast to 2014 when the company reported profits of £183m.
Npower faced a double whammy of issues in 2015 with a £26m fine by Ofgem for service failures and a shrinking market share which has seen the company’s customer base decline by 7%. The management has drawn out a 2 year plan which they hope will reverse its fortune.
Road to recovery routed
Npower’s two year plan is focused around four areas; simplicity, better customer service, lower overheads and costs, and planning for future challenges.
The push for lower costs does mean that there will be job losses which has been widely reported in the press to be 2400 employees. The company says that it is necessary to make these costs saving in order for the company to return to profits, which has left unions angry.
Improving customer service
Npower having accepted the £26m fine for severe customer service failures and have made it a flagship policy to improve customer service across its domestic retail arm. There was a review of the current billing system carried out in February 2016 with plans for a total overhaul set out. The Home Mover process which had brought many complaints is being totally reviewed. Advisors will also have access to more systems and information to help deal with issues faster.
There are signs of green shoots as this quarter complaints have fallen by 50%.
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