npower in bribery case

18 January 2005


One of the UK’s biggest energy suppliers, npower, is in a Hgh Court battle with one of its selling agents in a case that alleges bribery, breach of contract and excessive price rises. npower is seeking several million pounds in damages from sales agent First Contact, which in turn is counter-suing npower. First Contact is claiming that the German-owned group tried to cut the cost of commissions by dramatically raising energy prices to cut sales, before eventually terminating the partnership over breach of contract surrounding an alleged bribery incident, a charge First Contact strenuously denies. npower claims that First Contact offered a senior executive £12,000 (euro 17,0000) to help buy a new car if its contract was terminated in such a way that the agent would be eligible for a big compensation payment. npower claims it increased prices along with the rest of the industry to compensate for higher electricity wholesale prices. The case is expected to last at least a fortnight.



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