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Energy suppliers misselling gas and electricity deals forced to compensate customers

Energy suppliers who mis-sold gas tariffs or electricity tariffs to customers via door to door sales could be in trouble. Many customers who were sold energy deals on the doorstep have complained about the way they were sold the plans by the big energy firms.

According to The Energy and Climate Change Committee, the problem of mis-selling energy plans on the doorstep should have been sorted out a long time ago, but the practice continues. Up to 40% of customers who switched energy tariffs in this way did not end up with better gas or electricity price plans, MPs were told.

Industry body Energy UK said that rules concerning doorstep selling of gas and electricity deals had been toughened up a lot in recent years. Consumer Focus, the government watchdog, has requested that Ofgem tighten up on the whole process of selling energy deals.

In May 2011, one of the biggest energy firms was successfully prosecuted by Surrey Trading Standards for using deliberately misleading sales material which was presented to customers. The energy company has since completely shut down its door to door sales operation in response.

The Energy and Climate Change Committee also said that the vast number of tariffs available to consumers was confusing and designed to "bamboozle" people.

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Created: 28th Jul 2011, Last Modified: 7th Dec 2018, Switchomatic

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