One of the country's biggest gas and electricity suppliers is facing a �2m fine for failing to stop its sales staff from mis-selling to customers.

I'd like to apologise unreservedly to customers who have been inconvenienced by some of our sales agents

Derek Lickorish, London Electricity chief operating officer

The energy regulator Ofgem is proposing the penalty after a four-month investigation into tactics used by London Electricity and its affiliate company Virgin Home Energy.

The regulator found that agents were using information from people who had died or were using details obtained from the electoral register to fill out supplier transfer forms.

There were also examples of salesmen working door-to-door and on the street using high-pressure tactics and confusing people into switching suppliers without their knowledge.

London Electricity has 21 days to appeal - asking Ofgem to reconsider its decision - or pay the �2m fine.

Contrition

The �2m fine has been proposed because the LE Group, which owns London Electricity and 75% of Virgin Home Energy, did not have systems in place to prevent mis-selling taking place.

The company has apologised to its customers, saying it had taken steps to prevent its sales force from using such tactics again.

"I'd like to apologise unreservedly to customers who have been inconvenienced by some of our sales agents," London Electricity's chief operating officer Derek Lickorish told BBC Radio 4's Today programme.

"I am confident that we have stamped out this deplorable behaviour," he said.

This is the first time Ofgem has used new powers which came into force in April this year.

Strong signal

Callum McCarthy, chief executive of Ofgem, said: "The record of London and Virgin Energy in the mis-selling of gas and electricity since the beginning of the year has been completely unacceptable.

"They are in clear breach of the rules governing direct selling.

"This sends out a strong signal to any other companies performing badly in this area."

UK energy minister Brian Wilson welcomed Ofgem's action, describing mis-selling as "a blight which will no longer be tolerated".

Apart from causing "confusion, anger and, in many cases, distress" among customers, it also undermined "the substantial advantages which consumers can gain from the proper workings of a competitive market", Mr Wilson said.

Your comments:

So firm action has been taken against one these companies at last. It's a shame it's taken so long, given that complaints of this nature have been made since the gas and electricity markets were opened up to competition in the late '90s. However, it's not all that surprising that the regulator, Ofgem, has been so slow to act - one measure of Ofgem's performance is the amount of people who change suppliers. Their figures probably only show the number of people who have been transferred, not the number of people who actually wanted to be transferred. However, if more people were prepared to change, the suppliers would have to offer cheaper gas and electricity and improve the service they offer.
James, UK

I had a salesman from NPower trying to tell me that they are the actual suppliers to all the electricity companies. Because of the deregulation they are allowed to supply direct to the customer. So I can save money changing to them. I refused. Then he got some information like Name and Address so that he can send some information booklet and asked me to sign an agreement. I refused and he tried telling me that without this he cannot send me any information. I asked him to leave immediately.
Venki Krishnan, UK

Im glad to see Virgin Energy being fined for mis-selling. A while back on of their sales reps was sent packing by my wife only for us to a receive a letter welcoming us as a customer a few weeks later. The rep had oviously forged my signature on the contract. When i phoned to complain Virgin energy told me that there was no way they could establish which sales rep was responsible for signing me up. As they reps are paid on commision i find this an unbelievable statement to make!!!
Matthew, England

I had a representative from NPower on my doorstep who tried to get me to sign something giving him permission to come in and read my meter, Knowing fine well that I had kicked NPower into touch when I moved into my new flat due to their appalling customer service I asked to see the paperwork. No prizes for guessing what it was.... the sooner this is made illegal the better.
Phil Shimmin, UK

About six months ago, the London Electric hounds were at my doorstep doing the hard sell. After convincing me that anything I signed would not be legally binding without my Southern Electric customer number (which I did not give), I signed the form "in readiness for when I wanted to change over". Lo & behold, I get a letter in the post 2 weeks later welcoming me as a London Electric company. After many furious and fruitless calls to LE customer services (each time being told that the "contract would stand up in court sir"), I lodged an official complaint through the ombudsman Energy Watch. Within a week, I was sent 3 apology letters from LE and was promptly re-connected back to Southern Electric. My faith in independent ombudsmen is duely restored.
Avik, UK

I have had an experience whereby a Virgin Home Energy Representative has knocked on my door and tried to persuade me to transfer my services to them. After insisting I wanted to stay with my current supplier, she agreed to take my details so that I would not be approached again in this way. I managed to see the word CONTRACT accross the top of the "info" sheet. She was about to sign me up despite my rejections.
Cali, UK

I had a salesman from London Electricity knock a couple of months back. He asked who my electricity supplier was. I said TXU Energi. He then said that London Electricity had "taken over" TXU, and that they were abolishing the "standing charges" and just needed my signature. They assured me it was just standard procedure and then I was not changing suppliers.
Being tired, I signed, thinking nothing of it. A few days later, someone from LE phoned and asked for the customer account number on my TXU bill. I thought this rather strange, as they should already have this if they had taken over TXU.
It was confirmed to me a couple of weeks later that I'd been totally lied to when I received a letter from TXU, saying they were sorry I had chosen to take my custom elsewhere. I do not want to have my electricity supplied by liars. They have surely broken the law. A �2m fine is not enough!
James L., UK

Since de-regulation, hundreds of thousands of happy customers have switched to more competitive deals on gas, electricity and phone. Despite a significant minority of bad sales tactics, the vast majority of customers really do save money by shopping around, so these bad news stories shouldn't put people off the subject altogether; the bad salespeople (especially their managers!) should be punished for bringing the industry in disrepute.
Marc, Wales, UK

Max makes the point that I think is at the root of the problem: if another supplier tells your supplier that you have changed, "competition" laws mean your supplier must give up your contract without question and without checking eith you. British Gas has twice tried to take over my electricity supply (confusing me with a neighbour) and the first I hear is when Southern Electricity writes to me regretting that I have terminated my service with them. Both times the onus has been on me to spend hours writing and telephoning to put things right; the original supplier isn't able to do anything. Complaining to EnergyWatch involves hours of form-filling. Current legislation makes things very easy for unscrupulous sales people: how many customers have been switched without their knowledge, and just accept the situation because it's too much trouble to rectify?
Roger, UK

I regularly get smarmy little oiks claiming that they have come to check the meter to make sure it is 'safe' or that they need to check the serial number. They all get turned away hoping to find a little old lady next door who will not be so forthright.
Mobile operators now have a system for when you want to move your number; your current operator issues a PAC (Port Authorisation Code) and you give this to the new company. Without this number, the old operator refuses to let your number go. It also expires after 30 days. Simple and it works.
Peter Galbavy, UK

So if Southern Electricity is taking steps to prevent mis-selling, why did I have two of their representatives knock on my door last night? They attempted to gain access to my house by claiming that they needed to check the serial number on my meter before launching into their high pressure sales tactics. Luckily for me, they aroused my suspicion by quoting too many incorrect details. Unfortunately for others though, judging by their alleged success rate, their tactics still appear to be working.
Susan, England

Gas and electricity salespeople - never let them in, never sign anything. The British Gas salesperson tried to get to the meters - I blocked his path. Unfortunately, I did sign up to the BG telephone trial - but he used that information somehow after he'd gone to transfer both my gas and electricity supplier to BG. A notice "No door-to-door sales people" went on the front door afterwards and has remains to this day.
msl, UK

A sales rep from London Electricity called at my house this week. English was not his first language so I may be being hard on him but it did seem as if he were trying to mislead me.
He asked to see my latest Southern Electric bill, which I refused. He then said that by signing a form we would no longer have to pay the Standing Charge but the way he phrased suggested that this was a special offer and although our bill would come direct from London Electricity, they were already supplying us via Southern Electricity.
I have had other callers who follow the line that their special offer is only available if you sign then and there. All of these people call despite a sign on my door that we do not buy goods and services on the doorstep.
Darren, UK

Someone calls at my door about once a month trying to persuade me to change gas/electricity/phone companies. Each one says they are cheaper than everyone else with this months special offer. I always ask for a leaflet detailing their charges so I can sit down and make an objective judgment without pressure. Without exception, the salesmen never have this literature available. Is it any wonder that they are treated with suspicion?
Andy, UK

Countless times I have been approached either at home or on the street by these people. On two occasions I got as far as providing my name and postcode, but was then asked to sign a form. Upon refusing to sign (or asking for an explanation of what the signature was required for) I have been met with lame excuses and explanations (none of which explain it's to give them the right to take over the supply) and also aggression.
Additionally, the price comparison data they present is misleading. They always take the worst terms of British Gas i.e. paying quarterly by cheque and compare it to their monthly direct debit rate. I am not surprised so many people have been duped by these techniques.
Jeanette Bell, UK

We were called on the phone by Seaboard, we specifically told them not to transfer us, but to just send us some information. Next thing we were welcomed as new customers. When we queried it took several phone calls before they agreed to at least check their phone tapes, which then turned out to have 'gone missing', and on that basis they could not enforce the contract.
They then changed us back to Southern Electricity, not charging us for the month that we were connected to them.
When we queried Southern they said that according to the official rules if they get notified that a customer has transferred they must just give up the contract to the new company, without checking with the actual customer!
Max, UK

I'm pleased to see something getting done about this problem. About three months ago I had a electricity salesman turn up on my doorstep. He tried to trick me into forging my father's signature to sign a contract with the electricity company. I complained to the company, and confirmed that I would like to be informed as to what action had been taken, then called a month later having heard nothing, to be told that they had decided that no action should be taken. The problem is that individuals seem to be able to avoid responsibility, whether they be salesmen, their managers, or the directors of the company.
James Lee

My answer is always the same to any sort of sales person - 'If I want your services, I will ask for them. Until then, please get off of my doorstep before I see you and your company in court for trespass'. It works a treat.
Sonia, England

My partner's mother died about three years ago. In the two years prior to her death she had been suffering mild-moderate Alzheimer's but still living at home. On 3 separate occasions doorstep sellers had manipulated her into signing over energy supply though her condition would have been immediately apparent. We too have had our supply changed without any visit or consent, and when challenged it is blamed as a 'clerical error' or 'wrong address'. Almost without exception the activates of companies in this area, including big brands, has been appalling and this fine is an excellent example of the consequences of continuing to do business like hustlers and gangsters.
Gus Swan, UK

Since moving house in April, I have had three doorstep sellers for Utilities. I work for a leading Utility and know that what each seller has told me is untrue. They even persist in lying once they know who I work for. Maybe many doorstep sellers don't know exactly what they are saying (many are contract staff with agencies) and it is people higher up the chain who work out the spiel that are at fault.
Andrew Clarke, England

How about banning this sort of selling all together? We don't get reps from e.g. Barclaycard coming to the door trying to get us to change Credit companies. Other types of advertising e.g. TV, radio and bill boards are enough for most other types of business.
Andrew Clarke, UK

On a positive note, I was approached in Sainsbury's by a Scottish Power rep who had leaflets and details about their tariffs and comparisons to YE. I agreed to transfer to Scottish Power and received a letter informing me it would be transferred. I then received a phone call to confirm that I did want to transfer and that the salesman had not put pressure on me. I am now happily saving money with Scottish Power.
Sally Scott, England

We had a Gas salesman come to our door - promised to move the electric meter for free ( a saving of about �500 ) if we signed over to get Gas and Electric from the Gas supplier. We then rang the Southern Gas to confirm when the meter would be moved and they said they couldn�t do it and the salesman had no authority to offer such a thing. We cancelled our contract with them !
Philip Mason, England

These people are bare-faced criminals. If any other business falsified documents and lumbered you with a product you didn't ask for they would go to prison. The CEO's of these companies had better sort this quickly, change their commission structures, or face jail.
John, UK