MP calls for end of doorstep energy rip-off
Door to door selling of gas and electricity by utility companies should bestopped, a Labour MP demanded today. The call follows a series ofmis-selling scandals. Last week energy regulator Ofgem fined LondonElectricity and Virgin HomeEnergy £2 million for failing to stop salesstaff from using unscrupulous sales methods to gain new customers.
A fourth month investigation into the energy giant found that some staffwere found to have spent hours in public libraries filling in formsauthorising a change of supplier using names and addresses taken from theelectoral register. And staff working for Virgin HomeEnergy persuadedcustomers at Virgin Megastore to sign what they thought was informationabout CDs and holidays only to discover later that they had changed supplier.
West Bromwich East MP Tom Watson, a member of the Home Affairs SelectCommittee, will today lay a Commons motion calling for the privatised energycompanies to stop door-to-door selling.
Tom's Early Day Motion, which is sponsored by MPs Jon Cruddas, John Cryerand Mark Tami, is expected to receive cross-party support when it appearson the Order Paper today.
Mr Watson said today: "All too many salespeople, usually working oncommission, have used unscrupulous and underhand tactics to get people totransfer from their existing gas and electricity suppliers.
"Salespeople using high-pressure tactics often target vulnerable people,such as the elderly, single women and students living away from home forthe first time.
"People are often left confused by a slick and deliberately deceptivesales patter so that they don't know what they have signed up for and onlyrealise later that they've actually switched suppliers. In other casesprice figures are misleadingly presented- what looks like a saving oftenresults in higher bills.
"The London Electricity scandal is just the tip of the iceberg. Thispractice of pushing on the doorstep is widespread across the privatisedutility industry. Like many MPs I've had many complaints from constituentswho have been the victims of energy mis-selling. It's now time to protectconsumers and get rid of door-to-door energy selling altogether."
Ofgem chief executive Callum McCarthy said: "Mis-selling causes greatconfusion and distress for individuals, often those who are mostvulnerable. It also damages customers' confidence in switching supplierswhich means that they many not be benefiting from consumer choice as theyshould."
