Guardian News and Media/London
Npower has become the latest firm to feel the heat of a mass consumer boycott after thousands of its gas and electricity customers said they plan to switch supplier to protest at its tax affairs.
In April, chief executive officer Paul Massara revealed in the House of Commons that his company had paid almost no corporation tax between 2009 and 2011. When it later emerged that the energy giant had used a Maltese company to transfer funds between it and its parent firm, RWE, experts suggested there was no other reason to do this except to reduce the firm’s tax liability.
Protest group 38 Degrees sprang into action. The not-for-profit, political-activist group, which takes its name from the angle at which an avalanche happens, organised a petition and potential mass boycott to send npower and other companies adopting similar measures a message that consumers will no longer support such firms.
By the end of last week more than 175,00 people had signed up, with 30,000 indicating that they were npower customers and were prepared to consider switching.
Npower says it didn’t do it, but the revelations about tax avoidance have provoked huge anger, particularly among critics concerned the “big six” energy companies lack proper regulation and have been profiteering at British consumers’ expense.
The fact that npower put up its prices by 9% in November didn’t help at a time when millions are in fuel poverty. It also emerged that its chief executive, Volker Beckers, was a non-executive director for HM Revenue Customs at the time when the Maltese tax arrangements were in place.
Npower has been robust in its defence. In a statement, Massara said: “We are proud of our company and reject the allegations from 38 Degrees. Corporation tax is low for us because we invested billions in the UK. Paying via Malta made no difference to UK tax. We do not engage in tax avoidance and we never will.”
