Economy Energy under investigation

Small supplier Economy Energy is under investigation for the way telesales staff arranged contracts and to check whether if customers were misled. Energy watchdog Ofgem will look at whether Economy Energy complied […]

Register now!

By Vicky Ellis

Small supplier Economy Energy is under investigation for the way telesales staff arranged contracts and to check whether if customers were misled.

Energy watchdog Ofgem will look at whether Economy Energy complied with its licence conditions when marketing gas and electricity to customers before February 2014.

The firm promotes itself as no frills, stating on its website it has “no expensive offices, advertising campaigns, glossy brochures or gimmicks”.

What appear to be customer testimonials on the site heap praise on the supplier, with one from a Michael Williams of Nottingham stating: “I was this close to cancelling because I had never heard of you. You said if you don’t try new things how do you know? So I did and am really glad I did.”

As ELN reported earlier this year, the supplier was rebuked by regulator Ofgem after complaints it was blocking some customers from switching.

At the time Economy Energy ignored our repeated efforts to contact senior management.

The supplier came under the spotlight once again this week as Ofgem announced it is investigating whether it has breached the licence conditions which allow it to operate.

Ofgem is checking all the information it gives to customers via marketing or telesales is:

– “complete and accurate” and capable of being easily understood;

– not misleading and fair in its content and how it is presented;

– and whether representatives “behave in a fair, transparent, appropriate and professional manner.”

When contacted by ELN, Economy Energy admitted to “errors” and said it has been supporting Ofgem with its investigation into practices dating back over 2013 and the start of 2014.

It appears to have a new CEO,

It said: “We have been extremely open with errors made at that time and have worked tirelessly to resolve those concerns.

“We have made significant investment in new systems, people and processes and are confident that we are now compliant, offering high levels of service to our customers and receiving positive feedback. All customers who were potentially affected in the past are being contacted. Moving forward we are keen to resolve these matters with Ofgem and continue to serve our customers.”