Ofgem has launched an investigation into the sale of energy by four major suppliers.

(npower, Scottish Power, Scottish and Southern Energy and EDF Energy) to determine if they are complying with new rules put in place as part of Ofgem’s energy retail probe which found that 40% of consumers switching on the doorstep inadvertently moved to a more expensive contract.

Last October Ofgem introduced tougher obligations meaning domestic suppliers have to be proactive in preventing mis-selling 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. 

The four energy companies face an investigation into whether these requirements have been breached following concerns about the sales approach being taken by suppliers when selling energy contracts. 

Previous investigations by OFGEM into mis-selling resulted in Npower being fined £1.8 million in 2008 and London Electricity (now part of EDF Energy) being fined £2 million in 2002. 

Switching energy companies can be a good way of reducing your energy bills but if you are worried  that you have been mis-sold,  a “Hotline” has been set up with Consumer Direct for consumers to provide any evidence of mis-selling, available on the standard Consumer Direct number 08454 04 05 06 (when dialling this number customers should choose option 1).

 You can help avoid making a mistake by 

• Always checking the salesperson's ID, contact details and their company as they should only be working for one firm
• Checking your own bills and comparing your current arrangements against the new estimate.
• Not rushing into anything. You should get a written estimate, and ask for written terms and conditions from the salesperson.

Remember

• Agreeing to switch on the telephone is the same as signing a contract, so ask first about cancellation rights and termination fees
• You have  a seven-day cooling-off period  for anything bought on the doorstep

If you need to complain about an energy supplier and don't know where to start then we have produced a simple to use three step guide to help you at - How to complain or you can download the Ofgem leaflet which also covers phone or doorstep energy sales.