By Lois Avery
Four of Britain’s biggest energy suppliers are being investigated for misselling energy, it came to light today (2 September).
Ofgem, the energy industry watchdog, has launched an investigation into whether npower, Scottish Power, Scottish and Southern Energy and EDF Energy, are complying with a new set of regulations designed to stop them misleading customers when selling new energy tariffs, both door to door and over the phone.
Last October, Ofgem introduced the tougher rules, which include providing customers with an estimate before any sales are concluded and showing customers a comparison of their current deal against any new offer.
The rules were designed to encourage suppliers to work harder to prevent misselling but the Ofgem investigation will now look in detail at the suppliers selling tactics.
To help with the investigation, Ofgem has set up a hotline for consumers to report any incidents of misselling.
Confused.com has also warned against door to door gas and electricity sales, and we have a guide on how to avoid door-to-door energy switching which details the most common pitfalls and how to spot them.
Ofgem’s senior partner, Andrew Wright, said: “Suppliers have existing obligations to detect and prevent misselling and new licence conditions were brought in following our probe to further increase protection for customers.
“We expect all suppliers to comply with these tougher obligations but if our investigations find otherwise we will take strong action.”
The hotline will be open from Thursday 2 September on the standard Consumer Direct number 08454 04 05 06 and Ofgem will review any evidence of misselling of energy contracts which Consumer Direct passes on.
