The worst energy rip-offs ever

Don't let your energy supplier get away with these awful antics

It’s very rare that we manage to go a week in our house without a phonecall during dinner from an energy company, offering us the world if only we’d switch over to them.  Our post is full of advertising fluff as well, though thankfully thus far we’ve escaped the worst of the doorstep sellers.

Not only are such methods an irritation (to put it mildly) it’s now emerged that the firms employing such tactics may actually be breaking the rules too.

The misselling probe

The energy regulator, OFGEM, has launched an investigation into the practices of four energy suppliers, to establish whether they are complying with new obligations to prevent misselling.

Last October the regulator introduced new rules aimed at preventing suppliers from malpractice when selling face-to-face and over the phone. It also made it compulsory for those firms selling door-to-door to provide customers with an estimate before concluding the deal, as well as a comparison between their current deal and the salesman’s offer.

However npower, Scottish Power, Scottish and Southern Energy and EDF Energy may not have followed these rules adequately, hence the investigation.

Sadly, sneaky misselling tactics are just the tip of the iceberg when it comes to the rip-off antics employed by many suppliers. So we’ve put together our five worst energy rip-offs!

Rip-off #1: Standard tariffs

The classic error made my many Brits (and I know members of my own family have been guilty of this on occasion) is just to sit on the supplier’s standard tariff. These are the basic deals that you will get from a supplier if you don’t sign up to one of their specific tariffs, for example an online tariff, or a green energy tariff.

If you’re buying from a salesman in person, these tend to be the deals they try to get you to take out.

These are the tariffs that the suppliers will use when trumpeting price cuts, stating that they have slashed 10% or whatever from the standard bill. That’s all well and good, but standard tariffs are the most expensive tariffs on the market – according to energyhelpline.com, you are looking at shelling out between £1,217 a year on average on a standard tariff compared to £890 for the cheapest in the market.

Rip-off #2: Key meters

When I was at University, our flat’s energy was topped up by a key meter, and it was a nightmare. Many a time the entire place would go dark, and all because my flatmate had once again forgotten it was his turn to put some money on the meter.

However, not only are they are pain to put up with, they also present a serious obstacle towards getting a cracking energy deal. There’s very little competition between the deals offered to homes on key meter supplies, which means in order to get a great deal you’ll have to ditch the meter. Sadly that is not only a cumbersome job, but will also involve costs of around £90 to £120. The good news is, you will usually make that money back through savings on your energy bill, within a year.

Rip-off #3: 'Green' tariffs

The vast majority of us want to help look after the planet. And one way of attempting to do just that is by going for a green energy tariff – one which uses energy that is renewable, so electricity generated by wind farms or solar panels, for example.

Unfortunately, green tariffs usually cost more than standard tariffs. But you may feel it's worth paying a premium to be ethical.

However, be aware there can be wide variances in the prices charged for green tariffs, as a result of the different fuel mix employed – in other words, exactly how much of the energy involved is renewable can vary greatly. So be sure you know exactly how green your tariff actually is before you sign up to pay a premium.

Rip-off #4: Bundled deals

In many areas you can save money by going for a bundled deal. For example, it may work out cheaper for you to sign up for a bundled broadband and phone deal than having them from two separate suppliers.

And for some customers, this holds true in the world of energy, where you can bundle up your gas and electricity deals with all sorts of other home bills. However, it’s worth doing a few sums before you sign on the dotted line – some providers on bundled deals promise the world, but in reality offer a collection of deals which all fall well short of the best individual deal. And signing up for such a deal can leave you seriously out of pocket.

Rip-off #5: Estimated bills

I’ve never quite got my head around the concept of an estimated bill. It doesn’t work like that with other bills that I pay out each month – O2 aren’t going to take a stab in the dark at how many calls I’ll be making this month, and just make up a sum for me to pay.

One way to ensure you don’t end up forking out more than you should do is to keep track of your energy use yourself. It’s not that difficult, you just need to be vigilant and check your meter reading on a regular basis, and then keep your supplier informed on the readings.

Fail to do so, and you could end up being in credit to your energy company! Or perhaps even worse, you could be suddenly forced onto an extremely high direct debit to make up for a big shortfall on your account. Take responsibility for managing your account yourself - odds are, you can't trust your energy company to get it right.

More: How to find a trustworthy solicitor | Five scams we all fall for

Compare gas and electricity tariffs through lovemoney.com