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Ofgem launches investigation of four suppliers over misselling practices Ofgem has begun investigations to establish whether four of the big six domestic energy suppliers are complying with new obligations to prevent misselling, brought in following the regulator's retail market probe. The four companies under a cloud are: Npower, ScottishPower, Scottish and Southern Energy and EDF Energy. The regulator is also urging customers to call a hotline if they are concerned about the sales approach any domestic suppliers have taken when selling energy contracts, either face-to-face or by telephone. Andrew Wright, Ofgem's senior partner, markets, 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." Welcoming Ofgem's action Audrey Gallacher, head of energy at Consumer Focus, said: "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. 'While many doorstep sales people will do a good job, the pay and rewards system continues to encourage misselling, 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 the companies involved would collaborate fully with the Ofgem investigation. She added: "The new regulations that cover doorstep-selling are part of the industry's EnergySure Code of Practice and members undergo a rigorous independent annual audit to ensure all the obligations are being met. "Any sales agent in breach of the code will be struck off the approved energy sales register. Companies take their customers' concerns seriously and would urge customers to call them directly with any concerns they have." Source: Utility Week © Faversham House Group Ltd 2010. News articles may be copied or forwarded
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