From The BBC:
The energy supplier Npower has been told to repay £1.2m to 200,000 of its gas customers.
The regulator Ofgem said they had paid more than expected when their gas tariffs were changed by the company in the course of 2007.
Ofgem said many customers benefitted, but those households which did not use much gas were made worse off.
An Npower spokesman said refunds were “the right thing to do” and letters would be sent to those affected.
Those who are still with Npower will receive a credit on their next bill while former customers will be sent a refund, Npower said.
Two-tier tariffs
Ofgem said the problem arose with the application of Npower’s two-tier tariffs – the standard arrangement in the energy industry.
Under these the first chunk of gas consumption is charged at a higher level than subsequent usage.
A spokesman for the regulator said that when the company cut its overall level of charges, it did make clear to customers that some of them might simultaneously be moved from its…
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