Energy salesmen preying on vulnerable customers

August 31, 2010 by Reno  
Filed under News, News Utilities

It has been reported that in the run up to the winter, when many households and consumers may be concerned about their energy bills, unscrupulous energy salesmen may be preying on vulnerable consumers. Whilst regulators have tried to crack down on doorstep sales, it appears that many salesmen working on commission are still talking consumers into switching.

More worryingly is the fact that many of the vulnerable consumers that these salesmen are preying on end up on more expensive deals. Many of those that are being targeted by these salesmen are elderly or low income consumers, and this makes the situation even worse.

Tough new rules were imposed with regards to doorstep selling around eight months ago, but despite these new regulations the practice still continues. It is thought that last year around two and a half million consumers switched their energy supplier after sales staff from approached them on their doorsteps, in public places, or by phone in order to persuade them to switch.

The energy regulator Ofgem brought in new regulation with regards to these sales at the start of this year, and this involved the having to provide a written estimate before any sale or switch was concluded. However, consumer campaign groups are adamant that mis-selling of energy is still going on.           

An official from the consumer group said: ‘We are very concerned that consumers are continuing to report being hit by bad sales practices. If any company is encouraging their employees to break the rules and talk customers into taking up an energy deal that leaves them worse off, there should be strict action from the regulator.’

Tags: Tough new rules, Consumer Focus, half million consumers, energy regulator ofgem, energy firms, energy regulator, energy salesmen, energy suppliers

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