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Thursday, 23 May, 2002, 13:29 GMT 14:29 UK
Energy firms told to stop mis-selling
Doorstep mis-selling is still widespread
The UK Government has ordered energy companies to clean up their act and stop doorstep mis-selling within the next six months or face tough action.


If the problem is not receding [within six months], further action will follow

Brian Wilson

Energy Minister Brian Wilson told senior figures from the gas and electricity industry on Thursday that they must do more to stop the practices of unscrupulous salesmen.

A recent report by Energywatch, the consumer body, highlighted that mis-selling was still widespread in the industry.

Curbs on companies that fail to comply could involve licence amendments, such as preventing companies from doorstep selling.

Government pressure

Mr Wilson said that while thousands of customers have benefited from competition, the industry was still blighted by the activities of unscrupulous salesmen.

In April, Energywatch received 13,000 new complaints, with more than 1,900 related to sales or erroneous transfers.

Last week alone Energywatch received 2,800 complaints. Of these 340 involved complaints were about sales or erroneous transfers.

In his speech, Mr Wilson quoted from a number of mis-selling cases, such as one case involving a woman suffering from motor neurone disease.

Although unable to move her arms, she supposedly signed a contract to transfer her gas and electricity supplies.

In another case, a 90-year-old lady from Swansea had her signature forged, and was sent a �4,000 bill by the new energy supplier.

Mr Wilson said: "Energy companies need to clean up their act and demonstrate to their customers that they are taking the problem seriously.

"I will be asking Ofgem and Energywatch to report back to me on progress that is made over the next six months. If the problem is not receding, further action will follow."

See also:

12 Nov 01 | Scotland
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