Energy regulator investigates mis-selling
The energy regulator is to ensure sales tactics are fair.
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Thursday, 02, Sep 2010 05:19
By Chris Malone
Energy regulator Ofgem has revealed that it has launched an investigation into the activities of four of the top UK power suppliers.
It will examine the behaviour of npower, Scottish Power, Scottish and Southern Energy and EDF Energy, looking specifically at sales techniques used to sign up customers.
A special hotline has been set up with Consumer Direct to provide consumers with a place to give evidence against the suppliers.
The body wishes to establish whether the companies are complying with new obligations set out to put a stop to mis-selling.
Ofgem senior partner for markets Andrew Wright explained that suppliers have a responsibility to ensure their staff do not mislead consumers.
"We expect all suppliers to comply with these tougher obligations but if our investigations find otherwise we will take strong action," he said.
The new regulations were brought in last October and apply to both face-to-face sales and those made over the phone.
Both Ofgem and Consumer Focus have published leaflets with information and advice for consumers regarding energy sales.
Meanwhile, Ofgem recently announced that 11 projects submitted by electricity distribution networks are eligible to apply for funding from the Low Carbon Networks Fund.