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Ofgem gets tough on energy providers

The energy regulator Ofgem has warned it is prepared to take "strong action" against N-Power, Scottish Power, Scottish & Southern Energy and EDF if they are found guilty of breaching new direct selling guidelines.

Current rules state that potential new providers must provide customers with estimates and comparisons with their current supplier before a sale is concluded.

Ofgem has set up a hotline for consumers who are concerned about the sales approaches employed by suppliers to sell energy contracts, either face to face or by telephone.

Ofgem spokesman Andrew Wright said: "Suppliers have existing obligations to detect and prevent mis-selling, and new licence conditions were brought in following our probe to further increase protection for customers. We expect all suppliers to comply with these tougher obligations but if our investigations find otherwise we will take strong action."

Consumers with concerns about their bills should phone the hotline which will be open from today on the standard Consumer Direct number 0845 404 0506.

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