Scottish and Southern Energy's Slough power station . Gareth Kloet, Head of Utilities at Confused.com , welcomed the inquiry into four of Britain's leading energy providers, including Scottish and Southern Energy. "It is unacceptable for energy companies to mislead customers like this," he said. The Office of Gas and Electricity Markets (Ofgem), the regulator of the electricity and gas markets in Great Britain, has launched an investigation into four of the largest British energy suppliers over suspicions that they not be complying with face-to-face and telephone sales regulations. The four organisations facing scrutiny could be fined up to 10\% of their annual turnover if it is found that they are breaking sales regulations. Scottish Power, npower, Scottish and Southern Energy and EDF Energy are all to face questioning by the organisation. New regulations on sales tactics by energy suppliers were recently introduced, and, Ofgem has said, energy suppliers must be "proactive in preventing misselling to customers both face to face and over the phone. Also, if suppliers are selling contracts face to face they must provide customers with an estimate before any sales are concluded. In most circumstances customers should also receive a comparison of the supplier’s offer with their current deal." Only one in five consumers consider energy suppliers to be trustworthy, and 61\% of people feel intimidated by doorstep sales people from energy companies. According to the organisation Consumer Focus , "complaints have declined since new rules came into effect this year, but suppliers still seem to be flouting the rules. Some customers are still being given misleading quotes and information, which leave them worse off when they switch provider." The newspaper The Guardian has reported that "householders are reporting that sales agents working for the energy suppliers are giving them misleading information and quotes which leave them worse off when they switch supplier." Consumer Focus has said that if energy companies continue to break the rules, they could be banned from doorstep-selling completely. The report goes on to say that "new figures from helpline Consumer Direct show that while the number of complaints has fallen since last year, about 200 cases of mis-selling are being reported each month." However, Scottish Power said it insists on “the highest standards possible for all of our sales agents”, and npower told the Financial Times that it was “confident that the processes we have in place mean that we comply with our regulatory obligations”. EDF added that it was “fully compliant with all obligations regarding sales of energy contracts”. Head of energy at Consumer Focus, Audrey Gallacher, called the investigation "a welcome step ... to address years of customers getting a bad deal on energy prices on their doorstep. While many doorstep sales people will do a good job, the pay and rewards system continues to encourage mis-selling, despite years of regulation and voluntary initiatives. If better advice for customers and enforcement of the tougher rules doesn't end the flagrant abuse of this form of selling the big question will be whether it should be completely banned." Christine McGourty, director of Energy UK , which represents the leading gas and electricity companies, said that "the companies involved will collaborate with the Ofgem investigation and are awaiting further details from the regulator. Any sales agent in breach of the code will be struck off the approved energy sales register." Which? chief executive, Peter Vicary-Smith, has said he considers the situation “shocking", saying that the investigation "will do nothing to improve consumer trust in energy suppliers. We're pleased that Ofgem has promised tough measures against any firms guilty of mis-selling. We hope it uses this opportunity to tighten rules around telesales so they are in line with those for face to face sales." SNP Westminster Energy spokesperson Mike Weir MP , however, said that the investigation "does nothing to tackle the real problem of fuel prices which leave many Scots facing great difficulty in heating their homes ... Rather than tinkering around the edges Ofgem should be looking at how to reduce prices for vulnerable households." Gareth Kloet, Head of Utilities at Confused.com , one of the UK’s biggest and most popular price comparison services, also welcomed the inquiry. "It is unacceptable for energy companies to mislead customers like this," he said, adding that Confused.com has previously "urged energy providers to either stop the practice of doorstep selling or make it very clear to households that better deals are available online. There is no reason why door-to-door salesmen can’t show people online deals and even help households switch to them.”
's . Gareth Kloet, Head of Utilities at , welcomed the inquiry into four of Britain's leading energy providers, including Scottish and Southern Energy. "It is unacceptable for energy companies to mislead customers like this," he said. The (Ofgem), the regulator of the and markets in Great Britain, has launched an investigation into four of the largest British energy suppliers over suspicions that they not be complying with face-to-face and telephone sales regulations. The four organisations facing scrutiny could be fined up to 10\% of their annual turnover if it is found that they are breaking sales regulations. , , and are all to face questioning by the organisation. New regulations on sales tactics by energy suppliers were recently introduced, and, Ofgem has said, energy suppliers must be "proactive in preventing misselling to customers both face to face and over the phone. Also, if suppliers are selling contracts face to face they must provide customers with an estimate before any sales are concluded. In most circumstances customers should also receive a comparison of the supplier’s offer with their current deal." Only one in five consumers consider energy suppliers to be trustworthy, and 61\% of people feel intimidated by doorstep sales people from energy companies. According to the organisation , "complaints have declined since new rules came into effect this year, but suppliers still seem to be flouting the rules. Some customers are still being given misleading quotes and information, which leave them worse off when they switch provider." The newspaper has reported that "householders are reporting that sales agents working for the energy suppliers are giving them misleading information and quotes which leave them worse off when they switch supplier." Consumer Focus has said that if energy companies continue to break the rules, they could be banned from doorstep-selling completely. The report goes on to say that "new figures from helpline show that while the number of complaints has fallen since last year, about 200 cases of mis-selling are being reported each month." However, Scottish Power said it insists on “the highest standards possible for all of our sales agents”, and npower told the that it was “confident that the processes we have in place mean that we comply with our regulatory obligations”. EDF added that it was “fully compliant with all obligations regarding sales of energy contracts”. Head of energy at Consumer Focus, Audrey Gallacher, called the investigation "a welcome step ... to address years of customers getting a bad deal on energy prices on their doorstep. While many doorstep sales people will do a good job, the pay and rewards system continues to encourage mis-selling, despite years of regulation and voluntary initiatives. If better advice for customers and enforcement of the tougher rules doesn't end the flagrant abuse of this form of selling the big question will be whether it should be completely banned." Christine McGourty, director of , which represents the leading gas and electricity companies, said that "the companies involved will collaborate with the Ofgem investigation and are awaiting further details from the regulator. Any sales agent in breach of the code will be struck off the approved energy sales register." chief executive, Peter Vicary-Smith, has said he considers the situation “shocking", saying that the investigation "will do nothing to improve consumer trust in energy suppliers. We're pleased that Ofgem has promised tough measures against any firms guilty of mis-selling. We hope it uses this opportunity to tighten rules around telesales so they are in line with those for face to face sales." Westminster Energy spokesperson , however, said that the investigation "does nothing to tackle the real problem of fuel prices which leave many Scots facing great difficulty in heating their homes ... Rather than tinkering around the edges Ofgem should be looking at how to reduce prices for vulnerable households." Gareth Kloet, Head of Utilities at , one of the UK’s biggest and most popular price comparison services, also welcomed the inquiry. "It is unacceptable for energy companies to mislead customers like this," he said, adding that Confused.com has previously "urged energy providers to either stop the practice of doorstep selling or make it very clear to households that better deals are available online. There is no reason why door-to-door salesmen can’t show people online deals and even help households switch to them.”
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Scottish and Southern Energy's Slough power station
's
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Confused.com
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Office of Gas and Electricity Markets
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electricity and gas
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Scottish Power, npower, Scottish and Southern Energy and EDF Energy
, , and
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Consumer Focus
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The Guardian
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Consumer Direct
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Financial Times
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Energy UK
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Which?
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SNP
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Mike Weir MP
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Confused.com