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Ofgem launches investigation into energy sales by E.ON

By 6th April 2012No Comments

Ofgem have now added E.ON to the list of suppliers they are investigating to establish if they are complying with its selling obligations.

In 2009 and 2010, Ofgem strengthened suppliers’ obligations relating to energy sales. The changes set out that suppliers are required to put in place robust processes to guard against misselling. These obligations include ensuring that any marketing material that suppliers use and information that they provide during telesales and face-to-face marketing are fair, accurate, easy to understand and do not relate to products that are inappropriate for the customer. Also, suppliers are required to conduct any telesales and face-to-face marketing activities in a fair, transparent, appropriate and professional manner.

Ofgem is also continuing its investigations into the energy sales practices of Scottish Power, SSE and npower. The fact that Ofgem is undertaking these investigations should not be taken as a conclusion that any supplier has breached licence conditions or otherwise broken the law.

One company that has recently been investigated on this issue is EDF Energy. As a result, EDF Energy has proposed to make payments amounting to £4.5 million, which will benefit consumers. Of the £4.5 million package, £1m will be donated to support the Energy Best Deal public awareness campaign run by Citizens Advice Bureau, aimed at helping improve the confidence of domestic energy customers across England and Wales to shop around, reduce their bills and get help if they are falling behind with energy payments. £3.5 million will be used to further reduce the bills of EDF Energy customers at risk of fuel poverty (who are eligible to receive pension credit and the Warm Home Discount).

Ofgem calling suppliers to account!

More details can be found here