New tight rules for doorstep energy sales implemented

Energy regulator Ofgem has imposed a new rule to make sure that any doorstep energy salesperson has to provide a written quote to new customers to refrain from miss-selling power contracts. The recent move of the UK regulator came as a result of its February 2008 investigations on the UK’s energy market.

But one website, Uswitch, advises consumers to still double check the total bill if they were offered a better contract than their existing tariff. Energy companies are also urged to give small industries clearer contracts, stating a more specific time when the new contract be open for negotiations.

Moreover, Ofgem said that consumers will get their first annual statement from energy suppliers by December 2010. The move will allow pre-payment consumers to change energy supplier even though their current bill has a debt of up to £200.

In addition to different payment methods that reflect the varied tariffs, the new regulation also states that new price plans sold over the phone, into the consumer’s doorstep, or in retail establishments must be handed with a written quote before closing the transaction.

Ann Robinson from Uswitch however said that the new rule only wants to ensure that consumers have obtained a written evidence of what energy plan they had been offered. She added that it does not guarantee to be a better deal than their current energy plan.

In related news, a new poll from the consumer association Which? found that the recent cold snap had greatly affected people’s financial standing. The research revealed that 38 per cent out of the 1,066 surveyed Brits worry about their energy bills this month. The Which? poll had advised people to wear extra clothing to keep them warm and to save energy during winter rather than using electric heating devices.