npower faces mis-selling probe
Energy regulator Ofgem has launched an investigation into mis-selling involving Worcester-based electricity and gas supplier npower. Scottish Power, Scottish and Southern Energy and EDF Energy are also being investigated.
Ofgem says the probe will examine if the companies are complying with new obligations to prevent mis-selling, brought in following Ofgem’s retail market probe.
The regulator is also urging customers to call a hotline (08454 04 05 06) if they are concerned about the sales approach any domestic suppliers have taken when selling energy contracts, either face-to-face or by telephone.
Andrew Wright, Ofgem’s senior partner of markets, said: “Suppliers have existing obligations to detect and prevent misselling and new licence conditions were brought in following our probe to further increase protection for customers.
"We expect all suppliers to comply with these tougher obligations but if our investigations find otherwise we will take strong action.”
Last October, Ofgem introduced tougher obligations meaning suppliers have to be proactive in preventing misselling 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 are concluded. In most circumstances customers should also receive a comparison of the supplier’s offer with their current deal.
