The fine was imposed after npower used incorrect information to calculate the amount of electricity it supplied to customers under the the Government’s Feed-in Tariff (FiT) and Renewables Obligation (RO) schemes.
As part of the RO scheme, companies are required to source a proportion of electricity supplied to customers from renewable sources while the FiT requires suppliers to provide an incentive to small-scale generators of renewable energy.
npower under-reported the amount by 0.08% in 2010-11 and by 0.28% in 2011-12.
The watchdog said the company has however identified and reported the error to Ofgem and also took steps to prevent it from reoccurring, which was not repeated in 2012/13.
Ofgem said the size of penalty takes into account that npower has already voluntarily forfeited Renewable Obligations Certificates valued at £896,900 and will make a late payment of £63,000 to account for the FIT reporting error.
npower chief executive Paul Massara said the error had been discovered during efforts to increase the company’s controls around compliance reporting.
"Accurate reporting is extremely important to us – especially in areas of compliance – and we have assured Ofgem that the changes we have made to our controls and procedures will ensure this error does not happen again," Massara added.
