Energy News

Energy companies should 'cough up compensation' for mis-selling

By Kelvin Goodson - kelvin@consumerchoices.co.uk

MPs want suppliers to “ditch the Del Boy sales tricks”.

Scottish and Southern Energy (SSE) has become the latest of the “big six” energy companies to announce it will increase gas and electricity prices.

MPs on the committee are worried that people are being pressured into signing up with a new supplier because they are bamboozled by complicated contracts and aggressive sales tactics.

Tim Yeo MP, chairman of the energy and climate change committee, said: "There is mounting concern in parliament about the doorstep selling techniques of large energy companies.

“If it turns out that consumers are being persuaded to switch contracts when it’s not in their best interests, by salespeople keen to earn commission, then it would only be right for the energy companies to cough up compensation,” he explained.

Mr Yeo went onto say that Scottish and Southern Energy’s (SSE’s) recent decision to suspend doorstep selling following a hearing in front of the energy and climate change committee was a welcome one.

“The rest of the ’Big Six’ should ditch the Del Boy sales tricks and concentrate on giving customers the information they need to choose the correct contract,” he said.

The committee’s demands form part of a new report on Ofgem's retail market review, with the MPs criticising recent price rises by Scottish Power in particular, saying customers who use the least energy will be hit the hardest when the increases kick in next month.

It is believed that this could encourage Scottish Power customers to use more energy at a time when such companies should be helping consumers to cut their consumption.

Mr Yeo added that the energy industry should simplify bills and tariffs to make it easier for consumers to switch suppliers before the government or regulator Ofgem has to get involved.

"Electricity and gas tariffs are now so complex that even the energy minister admitted he got confused when trying to switch,” he said.