Menu
02/09/2010
Energy Suppliers Face Mis-Selling Investigation
Ofgem has launched investigations into four energy suppliers to determine if they are mis-selling and complying with new obligations.
Scottish Power, npower, Scottish and Southern Energy and EDF Energy will face an inquiry about the sales approach any 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."
Last October Ofgem introduced tougher obligations meaning suppliers have to 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.
Which? Chief Executive, Peter Vicary-Smith, said: "It's shocking that Ofgem is having to investigate mis-selling by such a large slice of the UK's energy market. This 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."
(CD/GK)
Scottish Power, npower, Scottish and Southern Energy and EDF Energy will face an inquiry about the sales approach any 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."
Last October Ofgem introduced tougher obligations meaning suppliers have to 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.
Which? Chief Executive, Peter Vicary-Smith, said: "It's shocking that Ofgem is having to investigate mis-selling by such a large slice of the UK's energy market. This 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."
(CD/GK)
Related UK National News Stories
Click here for the latest headlines.
28 August 2013
Ofgem Begin Shakeup Of Energy Industry
The gas and electricity industry regulator, Ofgem, has said suppliers must inform customers of the cheapest available deal on offer, alongside households being supplied with simplified tariffs, by March 2014.
Ofgem Begin Shakeup Of Energy Industry
The gas and electricity industry regulator, Ofgem, has said suppliers must inform customers of the cheapest available deal on offer, alongside households being supplied with simplified tariffs, by March 2014.
05 July 2005
Energy firms ordered to improve their billing
Energy suppliers must improve the way they bill their customers within a year or face regulatory action, industry regulator Ofgem has warned. Ofgem has ordered suppliers to stop ‘back-billing’ – failing to supply a bill and then charging customers the full amount at a later date - beyond two years. This would be reduced again to one year in 2007.
Energy firms ordered to improve their billing
Energy suppliers must improve the way they bill their customers within a year or face regulatory action, industry regulator Ofgem has warned. Ofgem has ordered suppliers to stop ‘back-billing’ – failing to supply a bill and then charging customers the full amount at a later date - beyond two years. This would be reduced again to one year in 2007.
23 March 2009
Ofgem Unveils New Rules For Energy Suppliers
Energy regulator Ofgem has unveiled a package of new rules for energy suppliers that will give consumers more power and help to seal the flaws in the retail market identified in the regulator's market probe. The proposed measures will make the market work better for all energy consumers including vulnerable households and small businesses.
Ofgem Unveils New Rules For Energy Suppliers
Energy regulator Ofgem has unveiled a package of new rules for energy suppliers that will give consumers more power and help to seal the flaws in the retail market identified in the regulator's market probe. The proposed measures will make the market work better for all energy consumers including vulnerable households and small businesses.
22 February 2008
Ofgem To Investigate Energy Suppliers
Energy regulator Ofgem has launched an investigation into the markets in electricity and gas for households and small businesses. Ofgem's inquiry follows a series of inflation-busting price hikes announced recently by big energy firms. The regulator has no strong evidence of failure in the gas and electricity market.
Ofgem To Investigate Energy Suppliers
Energy regulator Ofgem has launched an investigation into the markets in electricity and gas for households and small businesses. Ofgem's inquiry follows a series of inflation-busting price hikes announced recently by big energy firms. The regulator has no strong evidence of failure in the gas and electricity market.
26 February 2014
Ofgem Produces New Rules For Energy Industry
The UK's 'Big Six' energy companies must trade fairly or face financial penalties, the industry regulator has said. Ofgem has produced a series of new regulations for the industry to take effect from 31 March, which they say will mean a "simpler, clearer, fairer energy market".
Ofgem Produces New Rules For Energy Industry
The UK's 'Big Six' energy companies must trade fairly or face financial penalties, the industry regulator has said. Ofgem has produced a series of new regulations for the industry to take effect from 31 March, which they say will mean a "simpler, clearer, fairer energy market".
-
Northern Ireland WeatherThis Evening and Tonight:Showers, scattered in the evening, will clear by midnight leaving the night dry with clear spells. Perhaps a touch of ground frost. Cloud will spread east towards morning. Minimum temperature 2 °C.
