London Electricity (LE) Group could soon be forced to drop its use of Sir Richard Branson’s Virgin brand for its Virgin Home Energy services, following a bout of negative publicity.
LE Group is in consultation with the Virgin Group about the use of the latter’s brand name for selling gas and electricity. The Virgin Energy brand is used for LE Group’s national services.
Ashley Stockwell, Virgin Group’s first brand marketing director (MW July 18) says that one of the options being considered is the withdrawal of the use of the Virgin name from LE operations selling gas and electricity.
Stockwell says: “There needs to be a radical rethink about the Virgin Energy brand. One of the options for us is to take the brand away from LE, since recent events have brought disrepute to the Virgin brand. There are issues of quality of service which need to be dealt with. We are currently reviewing the situation and the decision will be made in the next couple of weeks.”
Earlier this month, energy watchdog Energywatch lambasted Virgin Energy, after complaints from consumers who claimed that their electricity supplies were changed to Virgin Energy without their consent. At the same time, LE Group was forced to cease all marketing activity in Enfield and Edmonton, following a series of complaints about mis-selling (MW July 11).