Energy companies 'should compensate customers over mis-selling'

Monday, 25 July 2011 10:13

Energy suppliers should compensate customers who have been mis-sold gas and electricity packages on their doorstep, according to MPs.

The Energy and Climate Change Committee has said too many people are being encouraged to switch when it his not in their best interests to do so and often end up paying higher bills as a result.

In a report, the group of MPs highlighted figures from Ofgem suggesting that up to 40 per cent of consumers who change supplier do not end up with a better deal.

A recent announcement from Scottish and Southern Energy that the company would stop employing door-to-door sales techniques was welcomed, with the committee going on to urge the rest of the 'big six' to follow suit.

"There is mounting concern in Parliament about the doorstep selling techniques of large energy companies," committee chairman Tim Yeo said.

"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."

"The rest of the big six should ditch the Del Boy sales tricks and concentrate on giving customers the information they need to choose the correct contract."

Government watchdog Consumer Focus said regulator Ofgem should take a "firm grip" on the provision of energy.

"Organised confusion, pressured selling, misleading information - no market should be able to operate like that, and especially not one that provides an essential product that is getting more and more expensive," said chief executive Mike O'Connor.

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