Energy firms warned on mis-selling

Web MasterBusiness Electricity, Business Gas, Utilities Market Regulation

MPs condemn mis-selling and say suppliers are guilty of ‘Del Boy’ sales tricks

Signing Contract

The Energy And Climate Change Committee (ECCC) has called for a ban on the doorstep mis-selling of energy contracts.

The Committee voiced concerns that people are being pressured by salesmen into deals that are no better, or often worse than their current one.

MP Tim Yeo, chairman of the the Energy and Climate Change Committee, said: “There is mounting concern in Parliament about the doorstep-selling techniques of large energy companies.”

“If it turns out that consumers are being persuaded to switch contracts when it’s not in their best interests, by salespeople keen to earn commission, then it would only be right for the energy companies to cough up compensation,” he said.

Energy regulator Ofgem estimates that 40% of people who switch do not get a better deal.

But Ofgem also says that those who fail to shop around are paying a minimum of £100 a year more than they need to.

The ECCC says that doorstep cold-calling should have been banned years ago.

For your business, make sure to cut out any mis-selling by using a UIA approved broker to take care of your energy contracts for you.