Ofgem Announces Review of Energy Sale Practices

Apparently the well known gas and electricity watchdog Ofgem has just recently launched an investigation into some of the UK’s energy suppliers to ensure that they are meeting new obligations set out earlier this year. Under the new rules, suppliers must not miss-sell any product and must make it very clear to customers how their energy use is monitored.

Ofgem, in an effort to protect consumers across the UK, has also ruled that all suppliers must provide an annual statement to consumers. This statement must outline how much energy they can be expected to use over the coming year.

This investigation will focus on four companies - main power suppliers Npower, Scottish Power, Scottish and Southern Energy, and EDF Energy. Audrey Gallacher, the head of energy at Consumer Focus, said that this is a welcomed step by Ofgem. They need to address years of customers getting bad deals on energy prices on their doorstep.

Gallacher went on to say that complaints have declined since the new rules came into effect this year. However, suppliers still seem to be flouting the rules. Some customers are still given misleading quotes and information. This leaves them worse off when they switch providers.

Overall, Ofgem is doing this to protect people from power companies. Without Ofgem, these power companies would be able to offer bad prices unchecked. Thus, this new investigation is something that most consumers will welcome with open arms. This goes double since people are doing all they can to save money right now and no one wants to overpay for power. More news about what Ofgem finds in their investigation should surface later on.