The gas and electricity regulator launches an investigation into dodgy dealings by doorstep sellers.
As habitual lovemoney.com readers know, my home is also my workplace.
Go away and leave me alone!
As a result, I experience a constant string of unwanted sales calls, both by telephone and through personal visits. However, unwelcome telephone calls and junk mail did ease off after I registered my new address with the Telephone Preference Service (TPS) and the Mailing Preference Service (MPS).
Alas, if only there were a DPS (Doorstop Preference Service), I would sign up like a shot, as I get fed up with visits from energy salesmen, charity collectors, etc. Although the Doorstep Selling Regulations provide some consumer protection (giving you at least seven days to cancel contracts for purchases of £35+), I’d prefer much tougher regulation of doorstep sales.
When salesmen deceive
One reason why I’d like tougher rules governing doorstep sales is that I was seriously misled recently by two energy salesmen who knocked on my door.
One had a clipboard which listed my name and address, and asked information on my energy bill, method of payment, etc. Crucially, he claimed to be from Scottish and Southern Energy -- my current supplier.
I refused to give the salesmen a copy of my gas and electricity bills and asked them to come back later. I then called Scottish and Southern Energy, who confirmed that no salesmen were in my area that day. After this, I called the police, because I was worried that these doorstep sellers would misinform elderly and housebound people in my area.
Armed with my description, Hampshire Constabulary picked up the two salesmen, but released them when they showed their official ID badges. They were, in fact, employed by Scottish Power, not Scottish and Southern Energy, as they had claimed.
So, while chasing a sale, they had lied about working for a different supplier. The police might not care but in my opinion, this amounts to fraud (or ‘attempting to obtain pecuniary advantage by deception’).
Ofgem cracks down on shady practices
Given my recent run-in with Scottish Power, I was delighted to see that energy regulator Ofgem (Office of the Gas and Electricity Markets) last week launched an investigation into mis-selling allegations against four leading gas and electricity suppliers.
The companies under the cosh are:
- EDF Energy
- npower
- Scottish and Southern Energy
- Scottish Power (yes!)
Ofgem is investigating to find out whether these four firms are complying with new obligations to prevent mis-selling, brought in following Ofgem’s recent retail-market probe.
In addition, the regulator has introduced a hotline for consumer to call if they are concerned about sales approaches taken by energy supplies when selling energy contracts, either face-to-face or by telephone.
To reach the hotline, call Consumer Direct on 08454 04 05 06 and select option 1. Consumer Direct will then pass on any evidence of mis-selling of energy contracts to Ofgem.
In addition, Ofgem and Consumer Focus have published this leaflet providing practical information and advice for when an energy salesperson calls at your door or telephones you at home.
A clampdown on mis-selling
As part of previous investigations into mis-selling, Ofgem fined npower £1.8 million in 2008 and fined London Electricity (now part of EDF Energy) £2 million in 2002. However, Ofgem has power to impose a financial penalty of up to 10% of an offending company’s yearly turnover.
In October 2009, Ofgem introduced tougher obligations forcing suppliers 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 go ahead. In most circumstances, customers should also receive a comparison of the new supplier’s offer with their current deal.
Andrew Wright, Ofgem’s Senior Partner, Markets, warned, “We expect all suppliers to comply with these tougher obligations, but if our investigations find otherwise, we will take strong action.”
Let’s all do our bit
Of course, I will be calling the above helpline to pass on my complaint about Scottish Power. Likewise, you can do your bit by alerting the watchdog to any dodgy doorstep dealings which you’ve experienced from these four companies.
Finally, if you have a complaint which your energy supplier isn’t taking seriously, then ask for it to be referred to the Energy Ombudsman. The Ombudsman can investigate the issue on your behalf and award compensation if it finds in your favour.
Let’s all join in to rid the UK of doorstep deception!
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