Ofgem update april 2012 investigations

[MARTIN3030]

Information Note

 

Wednesday 4 April 2012

 

OFGEM LAUNCHES INVESTIGATION INTO ENERGY SALES BY E.ON

 

Ofgem has today opened an investigation to establish whether E.ON is complying with its

obligations on energy sales.

 

The investigation is being launched following information which has come to Ofgem’s

attention regarding E.ON’s marketing activities.

 

In 2009 and 2010, Ofgem strengthened suppliers’ obligations relating to energy sales.

The changes set out that suppliers are required to put in place robust processes to guard

against misselling. These obligations include ensuring that any marketing material that

suppliers use and information that they provide during telesales and face-to-face

marketing are fair, accurate, easy to understand and do not relate to products that are

inappropriate for the customer. In addition, suppliers are required to conduct any

telesales and face-to-face marketing activities in a fair, transparent, appropriate and

professional manner.

 

Ofgem is continuing its investigations into the energy sales practices of Scottish Power,

SSE and npower and has recently concluded an investigation into EDF Energy on this

issue.

 

-ends-

 

 

 

1. The investigation will examine whether E.ON is complying with standard licence

condition 25, which regulates face-to-face and telephone sales activities. The fact

that Ofgem has launched an investigation should not in any way be taken as

implying that E.ON has breached licence conditions or otherwise broken the law.

As part of the investigation process Ofgem will examine any evidence of non-

compliance and consider whether there are grounds for exercising enforcement

powers. Further information on the investigation process and the potential

outcomes can be found in Ofgem’s enforcement guidelines.

 

2. Live investigations into energy sales

 

Ofgem is continuing its investigations into Scottish Power, SSE, and npower. For

the avoidance of doubt, the fact that Ofgem is continuing these investigations

should not be taken as a conclusion that any supplier has breached licence

conditions or otherwise broken the law.

 

3. Cases now concluding

 

Ofgem recently concluded its investigation into EDF Energy’s compliance with

standard licence condition 25. EDF Energy has proposed to make payments