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npower to repay gas customers

Power company npower is to repay an estimated 1.8 million customers of it gas supply after overcharging them between May and November 2007. This is because of the way it applied charges to its higher-rate first block gas units. The independent watchdog Consumer Focus has reviewed the way in which npower introduced price rises at that time, and concluded that most of the company's gas customers are entitled to a refund.

The repayment amounts to about £35 per customer on average, plus interest and VAT, and lands npower with a bill of around £63 million. During October and November, npower will be writing to all affected customers to offer them the refund. This will take the form of a letter that can be encashed at a post office.

Customers who think they qualify for a refund but have not heard from npower by the end of November should contact the company by phoning their helpline on 0800 975 7938.