Energy firm pays out after misleading customers

Birmingham-based energy supplier E is to pay £260,000 after an investigation found its sales representatives were “misleading” customers.

Industry regulator OFGEM ruled that it had failed to make sure its sales agents were “transparent or had sufficient background checks”.

E has agreed to pay the money into Ofgem’s new Voluntary Redress Fund, which will go to charity, including to help vulnerable energy consumers.

Ofgem’s senior partner in improving regulation, Martin Crouch, said: “E did not put security and transparency first when it came to face-to-face sales, and risked the trust and wellbeing of potential customers.

“This payment sends an important reminder to all suppliers that there’s no room for misleading behaviour when it comes to selling energy.”

Ofgem found that sales representatives for E contracted by third party agency Energy Watch UK were misleading because they presented themselves as an independent price comparison service.

However the regulator believes E, which had not been investigated before, has now “acted to put things right”.

Crouch added: “E has since worked well with Ofgem, and has changed its processes to make sure its agents have sufficient background checks and carry out sales in a transparent way.”