New rules on energy selling came into force on 18 January 2010, but are they enough to protect the householder?
The energy market, and doorstep energy sales practices in particular, have in the past come in for a lot of criticism and complaint. Consequently Ofgem started an investigation in February 2008 into this area and found that 42% of electricity 48% of gas switchers ended up paying more for their supply if they signed up to tariffs offered by doorstep sellers. As a result changes to ensure the fairer treatment of consumers are to be phased in.
Ofgem investigation
As part of its investigation the regulator found that it was not just consumers failing to shop around for better deals that paid more but that some salespeople were actually misleading customers. Those most likely to be caught out were the vulnerable and those consumers on pre-payment meters.
Pre-paid meters
All energy customers will be sent their first annual statement by their supplier by December 2010, Ofgem said and changes that allow pre-payment meter customers to switch suppliers even if they have a debt on bills of up to £200 should already be in place.
New - that written quote
Importantly, as well as different payment methods reflecting the different tariffs, anyone sold a new price plan on the doorstep, over the telephone, in the high street or in a store must be given a written quote before the sale goes through.
However, this does not mean it will necessarily be the cheapest deal and consumers, whilst they will have written proof of the deal offered, they should still shop around to check the price against other deals on the market to ensure that this is the best deal for their circumstances.
What to do if an energy salesperson calls on your door.
First check him or her out, note their identification. If you are worried then contact the company, this applies to any form of door selling. Be firm and insist that the tariff being offered is in writing, don’t sign anything until you know you are comfortable with the deal and the terms and conditions.
If you get asked to produce a current copy of your energy bill then DON’T until you are happy with the deal. This also applies to letting them to read your meter. Once they have this then any devious salespeople will have enough details to switch your without you knowing! You have been warned!
If you are struggling to pay for your energy the following help is available:
Contact your energy supplier as some suppliers offer cheaper energy deals to those customers on low incomes. Many suppliers can offer free or subsidised energy efficiency measures to customers on low incomes as part of the Government’s Energy Efficiency scheme.
Need to register a complaint against an energy supplier?
If you need to register a complaint then see our Debtwizard 3 step guide on how to complain against energy suppliers.
Debtwizard comment
The new rules will safeguard householders to a certain degree but the consumer must then get off their backside and see how they can improve on this tariff. They will have the written quote to hand to do any comparison.
Most energy doorstep sellers are usually working for one company, therefore they can only sell you that tariff from that particular energy supplier. It’s a bit like when you apply for a mortgage, go to one bank and all you get is their mortgage products, search the whole market and you can get the best products from a greater range.
If you need help with paying energy bills or wish to find out what you may be entitled to save energy then click here, you will then be taken to the Ofgem website.
