Show Hide image

UK's four biggest energy companies to be probed

There are concerns that customers have been 'mis-sold' energy deals by the UK's four major energy co

UK energy regulator Ofgem has announced a probe into four of Britain's largest energy companies, amid concerns of mis-selling to customers.
Ofgem says it has received information that Npower, Scottish Power, Scottish and Southern Energy, and EDF Energy may have breached its new regulations introduced last year.

Pending investigation, Ofgem has promised "strong action" if the suppliers were found to have failed in complying with its regulations, which demand that companies proactively prevent mis-selling.

"However, we are not implying that these companies have broken our rules. Our investigation will seek to establish that," said an Ofgem spokesman.

The new regulations were a result of Ofgem's 2008 research, which found that many consumers who switched their energy supplier following doorstep sales ended up with a higher tariff, because they were misled or found it difficult to compare bills.

Under previous mis-selling regulations, Ofgem had fined Npower £1.8m in 2008, and London Electricity - now part of EDF Energy - £2m in 2002, reports the BBC.

The four companies have agreed to work with Ofgem on the investigation.