Ofgem launches investigation into E.ON sales tactics

City A.M. Reporter
BRITAIN’S energy regulator Ofgem has started investigating whether electricity and gas supplier E.ON has used inappropriate sales tactics in its telephone and face-to-face marketing, the watchdog said yesterday.

E.ON is the fifth of the “Big Six” energy suppliers to be investigated for breaching fair marketing rules, with only Centrica’s British Gas retailer left untouched.

The other Big Six suppliers are RWE NPower, EDF Energy, SSE and Scottish Power.
“The investigation is being launched following information which has come to Ofgem’s attention regarding E.ON’s marketing activities,” the watchdog said.

At least three of the six big suppliers, EDF, Centrica and SSE, have stopped doorstep sales, after a consumer body called for an end to the practice, which many see as aggressive.

Ofgem last month closed its investigation of EDF after the utility agreed to pay £4.5m in benefit of UK energy customers and to change some of its sales tactics, the first time such an agreement has been made, Ofgem said.

Most of the sum, £3.5m, will help EDF Energy’s customers at risk of fuel poverty to reduce energy bills, while £1m will support a campaign to encourage customers to switch energy supplier.