MPs demand companies pay compensation for mis-sold energy deals

by Simon 1. August 2011 12:00

MPs are calling for energy companies to compensate consumers for mis-sold electricity and gas deals, highlighted in a new report from Ofgem.

With so many complex tariffs available the report states that up to 40% of customers have been left worse off after being pressurised to change suppliers by the energy companies' aggressive doorstep policies.

The chairman of the Energy and Climate Change Committee, Tim Yeo MP, 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."

The committee welcomed the decision of Scottish and Southern Energy to suspend their doorstep activities and are calling on other energy companies to do the same.

Tim Yeo went on to say: "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."

The committee also expressed grave concern over the recent, inflation-busting, price rises, noting that those who use the least energy will be hit the hardest.

At a time when we should all be considering as many energy saving solutions as possible the price hikes will act as "an apparent incentive for higher consumption".

Tim Yeo added: "Electricity and gas tariffs are now so complex that even the Energy Minister admitted he got confused when trying to switch.

"We are worried that a lot of people are simply bamboozled by their bills and the vast array of different tariffs on offer. The industry should address these problems immediately without waiting for Ofgem or the Government to act."

[Image: jimbowen0306]

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