This article is from the source 'guardian' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.
You can find the current article at its original source at http://www.guardian.co.uk/money/2013/may/18/npower-heat-accusations-tax-avoidance
The article has changed 3 times. There is an RSS feed of changes available.
| Version 0 | Version 1 |
|---|---|
| Npower feels the heat after accusations of UK tax avoidance | Npower feels the heat after accusations of UK tax avoidance |
| (4 months later) | |
| 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. | 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. | 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. | 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 this week more than 175,00 people had signed up, with 30,000 indicating that they were npower customers and were prepared to consider switching. | 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 this week more than 175,00 people had signed up, with 30,000 indicating that they were npower customers and were prepared to consider switching. |
| The group was part of the campaign against Starbucks, and another campaign that forced the government to halt its plan to sell off national forests. | The group was part of the campaign against Starbucks, and another campaign that forced the government to halt its plan to sell off national forests. |
| 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. | 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. | 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." | 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." |
| But David Babbs, executive director at 38 Degrees, says: "Npower has been caught dodging tax at the same time as hiking its prices. No wonder so many of its customers feel ripped off. We don't have to stand for this. | But David Babbs, executive director at 38 Degrees, says: "Npower has been caught dodging tax at the same time as hiking its prices. No wonder so many of its customers feel ripped off. We don't have to stand for this. |
| "Customer pressure forced Starbucks to change tack and we can do the same with npower. | "Customer pressure forced Starbucks to change tack and we can do the same with npower. |
| "If enough of us switch from npower to other energy suppliers, we'll send a powerful signal to all tax-dodging companies: if you want to keep your customers in the UK, start paying your fair share of tax in the UK." | "If enough of us switch from npower to other energy suppliers, we'll send a powerful signal to all tax-dodging companies: if you want to keep your customers in the UK, start paying your fair share of tax in the UK." |
| 38 Degrees say it sought a meeting with Massara, along with some of its members who were npower customers, but the company declined. | 38 Degrees say it sought a meeting with Massara, along with some of its members who were npower customers, but the company declined. |
| Anyone considering quitting npower has to choose where to go – and how much it will cost. | Anyone considering quitting npower has to choose where to go – and how much it will cost. |
| 38 Degrees suggests that boycotters should move to the Co-operative, Ebico, Ecotricity, Good Energy, Green Energy or Ovo. | 38 Degrees suggests that boycotters should move to the Co-operative, Ebico, Ecotricity, Good Energy, Green Energy or Ovo. |
| But there are likely to be higher costs. Guardian Money estimates for a family on npower's standard tariff, it will cost £45 extra a year to go to Good Energy, or £115 at Ecotricity. There may also be exit penalties if a customer is locked into a fixed-price tariff. | But there are likely to be higher costs. Guardian Money estimates for a family on npower's standard tariff, it will cost £45 extra a year to go to Good Energy, or £115 at Ecotricity. There may also be exit penalties if a customer is locked into a fixed-price tariff. |
| One npower customer, who says she will switch as part of the protest, is Chris Simpson, 57. She is a full-time carer who lives with and looks after her 90-year-old mother and a friend who is disabled and bed bound. | One npower customer, who says she will switch as part of the protest, is Chris Simpson, 57. She is a full-time carer who lives with and looks after her 90-year-old mother and a friend who is disabled and bed bound. |
| "When I read that npower was paying almost no tax I was really annoyed. The rest of us have no choice but to pay our taxes, but it is seemingly able to decide whether or not it wants to pay. It's not right it is able to get a competitive advantage in this way." | "When I read that npower was paying almost no tax I was really annoyed. The rest of us have no choice but to pay our taxes, but it is seemingly able to decide whether or not it wants to pay. It's not right it is able to get a competitive advantage in this way." |
| She says she is a firm believer in consumer power, and believes this company and others will have to take note of the bad publicity. She is also boycotting Amazon for the same reasons. But she admits her annoyance at npower may be coloured by the fact they can only afford to heat the downstairs of her Lancaster terraced home. | She says she is a firm believer in consumer power, and believes this company and others will have to take note of the bad publicity. She is also boycotting Amazon for the same reasons. But she admits her annoyance at npower may be coloured by the fact they can only afford to heat the downstairs of her Lancaster terraced home. |
| "We go around the rest of the house with our with coats on. I've been a npower customer for 14 months and in that time I've repeatedly tried to find out why our bills are so high (£150 per month) but every time I contact them, I don't get anywhere." | "We go around the rest of the house with our with coats on. I've been a npower customer for 14 months and in that time I've repeatedly tried to find out why our bills are so high (£150 per month) but every time I contact them, I don't get anywhere." |
| Over recent months a number of high-profile companies have been threatened with consumer boycotts following revelations they pay little or no tax despite clocking up millions – even billions of pounds in sales. Just this week the Guardian reported that Amazon paid just £3.2m in corporation tax on UK sales of £4.2bn. | Over recent months a number of high-profile companies have been threatened with consumer boycotts following revelations they pay little or no tax despite clocking up millions – even billions of pounds in sales. Just this week the Guardian reported that Amazon paid just £3.2m in corporation tax on UK sales of £4.2bn. |
| Our editors' picks for the day's top news and commentary delivered to your inbox each morning. |