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Last Updated: Tuesday, 19 August, 2003, 15:31 GMT 16:31 UK
Energy firms still 'duping' consumers
Kettle, mug
People feel tricked into changing supplier
Consumers are being left confused and overwhelmed by pushy doorstep energy salespeople, according to new research.

The findings from energy regulator Ofgem suggest that doorstep selling - though seen as the norm - is not welcomed by most consumers.

Often homeowners find it tough to ask salespeople to leave and feel bewildered by the complex arguments offered for switching energy supplier.

Some customers are approached by energy company representatives trying to get them to switch supplier more than once a week.

Forgery

The research has prompted consumer groups to call for compensation for hassled energy users who have been persuaded to switch gas or electricity suppliers by doorstep sellers.

While complaints about direct selling are falling, it is clear from this research that suppliers still have considerable scope to improve how they approach consumers
Iain Osborne, Ofgem

More than half the energy customers interviewed said that they found doorstep salespeople either "pushy" or a "nuisance".

Although the research concluded that complaints of energy mis-selling were on the wane, 25% of consumers who signed as a result of the contact went on to cancel the contract.

What is more, 2% of consumers said that their signature had been forged, 12% felt they had been "duped" into signing a contract and 11% had been transferred without their knowledge.

In general Ofgem said that customers wanted more time to consider any offer without pressure, and were cynical about the savings promised by salespeople.

However, there was a silver lining for the energy suppliers in that only 10% of those interviewed thought that firms should be barred from using direct sales approaches.

"While complaints about direct selling are falling, it is clear from this research that suppliers still have considerable scope to improve how they approach consumers," Ofgem director of supply, Iain Osborne, said.

In response, Ann Robinson, chair of the gas and electricity consumer group, said that mis-selling was still a bugbear for many UK consumers.

"This report... demonstrates why we are calling for proper compensation to adequately compensate consumers for the distress that they have suffered."




SEE ALSO:
Power to the people, says watchdog
22 Nov 02  |  Scotland
Q&A: Switching energy supplier
12 Feb 03  |  Business
Sellers sharpen up their act
12 Sep 02  |  Working Lunch


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