The Government regulator for power suppliers, Ofgem, has launched investigations into four suppliers major supplers to decide whether they are complying with the new obligations hotline, which has been set up with Consumer Direct, to allow consumers to provide evidence of misselling following stricter obligations on suppliers which were put in place as part of Ofgem’s energy retail inquiry.

Ofgem has begun to investigate whether npower, Scottish Power, Scottish and Southern Energy and EDF Energy are complying with new obligations to prevent misselling, which were introduced following Ofgem’s retail market probe.

Ofgem is also urging customers to call a hotline if they are concerned about the sales approach taken by any domestic suppliers when selling energy contracts, either in person or by telephone.

The hotline will be available on the standard Consumer Direct number 08454 04 05 06 (when dialing this number customers should choose option 1) and Ofgem will review any evidence of misselling of energy contracts which Consumer Direct passes on.

Andrew Wright, Ofgem’s Senior Partner, Markets, said:

“Suppliers have existing obligations to detect and prevent misselling 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.”

Last October Ofgem introduced stronger obligations which mean suppliers have to actively prevent misselling to customers both in person and over the phone, and if suppliers are selling contracts face to face they must provide customers with an estimate before any sales are concluded. Customers should also receive a comparison of the supplier’s offer with their current costs.

The requirements reflect the importance of these issues in the energy sector and are backed by tougher sanctions than those available under more general consumer protection law.

Ofgem and Consumer Focus have also published a leaflet of information and advice for consumers when an energy salesperson calls at their door or telephones them at home.