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Ofgem to investigate E.ON over mis-selling - 05/04/2012

Ofgem has confirmed it is to investigate energy supplier E.ON over claims its salespeople misled consumers when trying to get them to switch gas and electricity provider.

The regulator said it will examine whether the firm is complying with licensing conditions that require it to have robust processes in place to prevent mis-selling.

It explained it has taken the decision following new information about E.ON's marketing practices that has just come to light.

Responding to the news, director of energy at Consumer Focus Audrey Gallacher said mis-selling has been a "consistent problem" in the energy industry and needs to be tackled head-on.

She added: "While it is unclear what types of sales E.ON may be suspected of misleading consumers on, we would hope this announcement will cause them to end doorstep sales."

Ofgem is already investigating the activities of Scottish Power, SSE and npower and recently concluded a probe into EDF that saw the firm agree to invest £4.5 million to help vulnerable customers.

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