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E.ON to face sales probe by Ofgem

E.ON to face sales probe by Ofgem

Category: Gas and electricity

Updated: 05/04/2012
First Published: 05/04/2012

This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.

Energy supplier E.ON is to face an investigation from Ofgem over its sales practices.

The probe will look at the energy firm's telephone sales and those made on the doorstep.

The regulator tightened up selling rules in 2009 and 2010, ensuring that marketing material is 'fair, accurate, easy to understand and does not relate to products that are inappropriate for customers'.

Ofgem has not revealed the evidence or claims on which it has opened the investigation and stressed that the announcement should not in any way imply that E.ON had done anything wrong.

Ofgem is also in the process of investigating Scottish Power, SSE and Npower over possible mis-selling.

And EDF Energy recently agreed to pay out a £4.5 million package to benefit consumers after Ofgem looked at its selling practices.

E.ON is the only one of the big six energy suppliers that has persisted with doorstep selling, a decision that has attracted criticism.

Misselling has been a consistent problem in the energy market. Any suspicion that a supplier is in breach of their obligations to sell fairly must be tackled head on," Audrey Gallacher, director of Energy at Consumer Focus, said.

"While it is unclear what types of sales E.ON may be suspected of misleading consumers on, we would hope this announcement will cause them to rethink ending doorstep sales.

"E.ON has persistently failed to take action on this unwanted sales activity, despite being the only major supplier left selling at people's homes."

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