Energy suppliers in the dock over mis-selling claims

Four of the UK’s biggest energy suppliers are to be investigated over concerns they have been mis-selling products to customers.

The face to face and telephone sales techniques used by Npower, Scottish Power, Scottish and Southern Energy and EDF Energy are to be probed by Ofgem after concerns they are misleading customers when persuading them to switch suppliers.

The energy regulator says it has “begun investigations” to find if the four are complying with the measures it introduced last year to prevent mis-selling.

Ofgem wants suppliers to provide customers with an estimate before any sales are concluded and in most cases wants suppliers to provide customers with a comparison of the supplier’s offer with their current deal.

Andrew Wright, senior partner for markets at Ofgem, says: “Suppliers have existing obligations to detect and prevent mis-selling 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.”

The regulator is asking customers to call a hotline if they are concerned about the sales approach any supplier has taken when selling, either face-to-face or by telephone.

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