Energy News

Energy giants under investigation for consumer misselling

Thursday, 2 September 2010

By Seamour Rathore - seamour@consumerchoices.co.uk

Four of the UK’s “big six” energy suppliers are being investigated to see if they have been misselling energy contracts to the public.

Four of the UK’s “big six” energy suppliers are being investigated to see if they have been misselling energy contracts to the public.

Npower, Scottish Power, Scottish and Southern Energy and EDF Energy are being checked by energy regulator Ofgem to ensure they have been complying with new rules.

And it’s not the first time two of these firms have come under scrutiny. Npower was fined £1.8million in 2008 and London Electricity (now part of EDF Energy) - was fined £2million for misselling.

Energy suppliers are under an obligation to provide consumers with an estimate before the sale is closed and customers should generally expect to see a comparison of the new offer compared to their current deal.

The public is being urged to get in touch via a Hotline (08454 04 05 06) if they are concerned about the sales methods of the energy companies over the phone, or face-to-face.

If the companies have failed to follow the rules, regulator Ofgem can fine them up to 10% of their annual turnover.

Chris Eagle, marketing director at Energychoices.co.uk, said: “You should always take your time to compare prices fully if you’re thinking of switching energy deals.

“You should never feel pressurised into agreeing to a new contract without seeing a clear explanation of costs and don’t sign-up then and there if you’re not happy.

“The least pressurised way to look into switching is to compare energy prices online - you’ll be able to see all the possible deals compared and take your time to mull over their finer points,” he added.

Ofgem and Consumer Focus have published a leaflet with advice to follow if you are approached by an energy salesman.