Understanding Energy Mis-Selling
Understanding Energy Mis-Selling
Energy mis-selling happens when a gas or electricity supplier, or one of their agents, uses misleading or high-pressure tactics to persuade you to sign up for a contract. This can include providing false information, not explaining important details, or encouraging you to switch to a tariff that isn’t right for your needs.
Common Examples of Energy Mis-Selling
Mis-selling can take many forms. Some of the most frequent examples include:
Incorrect contract terms: You’re told the contract is for a fixed period, but it turns out to be variable, or the price is higher than promised.
False promises: The salesperson claims you’ll save money or receive special discounts that don’t exist.
Unsuitable tariffs: You’re encouraged to sign up for a tariff that doesn’t match your usage, leading to higher bills.
Not providing key information: Important details about exit fees, cooling-off periods, or contract length are left out or misrepresented.
Switching without consent: Your supplier is changed without your clear permission (sometimes known as “slamming”).
How Mis-Selling Can Affect You
Being a victim of energy mis-selling can have real consequences. You might end up paying more than you expected, facing unexpected fees, or struggling to switch back to your previous supplier. In some cases, you could find your energy service disrupted or lose access to deals that would have suited you better.
Your Rights as a Consumer
In the UK, you are protected by strong consumer rights and energy regulations. Suppliers must follow rules set by Ofgem, the energy regulator. These rules require suppliers to treat customers fairly, provide clear and accurate information, and ensure that any contract you sign is suitable for your needs.
If you believe you’ve been mis-sold an energy contract, you have the right to:
Complain to your supplier: They must investigate your complaint and respond within a reasonable time.
Cancel the contract: In many cases, you have a 14-day cooling-off period to cancel without penalty.
Escalate your complaint: If your supplier doesn’t resolve your issue, you can take your complaint further. The Ofgem guidelines, as enforced by the Energy Ombudsman, are there to protect you and help resolve disputes between consumers and energy suppliers.
For more information on how to make a formal complaint or to explore other ways to address gas and electric issues, visit our letter templates for gas and electric issues page. This can help you draft the right letter and understand the next steps if you feel you’ve been mis-sold an energy product.
When and Why to Complain About Energy Mis-Selling
When and Why to Complain About Energy Mis-Selling
Energy mis-selling happens when an energy supplier or their representative gives you false, misleading, or incomplete information to persuade you to switch providers or sign up for a new tariff. This can include exaggerating savings, hiding important terms, or pressuring you into making a quick decision. Under UK consumer law, including the Consumer Protection from Unfair Trading Regulations 2008, you have the right to expect honest and transparent information when choosing your energy supplier.
Situations That Warrant a Complaint
You should consider making a complaint if you have experienced any of the following:
Misleading Claims: The salesperson promised savings or benefits that turned out to be untrue, or they failed to explain important costs or contract terms.
Pressure Selling: You felt rushed, harassed, or pressured into signing up for a deal without enough time to consider your options.
Lack of Clear Information: Essential details about tariffs, exit fees, or contract length were not provided or were hidden in small print.
Switching Without Consent: Your energy account was switched to a new supplier without your clear agreement (sometimes called “slamming”).
Incorrect Billing or Back Billing: You received bills that do not match what was agreed, or you have been charged for energy you did not use.
If your issue relates more specifically to billing errors, such as being charged for energy you did not use, you may also want to review how to complain to a supplier about back billing.
How to Identify If You Have Been Mis-Sold Energy Services
It can sometimes be difficult to spot mis-selling, but common signs include:
Promises of savings that are not reflected on your bill.
Receiving a contract or welcome letter with details that do not match what you were told.
Feeling you were not given enough time or information to make an informed decision.
Discovering hidden fees or charges after signing up.
Being switched to a new energy supplier without your knowledge.
If you recognise any of these situations, you may have been mis-sold an energy product or service.
Why It’s Important to Complain Promptly
Making a complaint as soon as you notice a problem is crucial. Acting quickly helps you:
Protect your legal rights: Some remedies, such as cancelling a contract, may only be available within a certain timeframe.
Prevent further losses: Prompt action can stop additional charges or incorrect billing.
Provide clear evidence: The sooner you complain, the easier it is to remember details and gather supporting documents.
If you need help structuring your complaint, you can use a letter to complain to your energy supplier, which can be adapted for mis-selling cases.
What Outcomes Can You Request?
When you complain about energy mis-selling, you can ask your supplier for a range of remedies, including:
A full or partial refund for any money you have lost as a result of the mis-selling.
Contract cancellation without penalty, allowing you to switch to a different supplier or tariff.
Compensation for inconvenience or distress caused by the mis-selling.
Correction of your account to ensure you are on the agreed tariff and billed correctly.
Suppliers are required to investigate your complaint fairly and respond within a reasonable timeframe. If your issue is not resolved, you may have the right to escalate your complaint to the Energy Ombudsman or seek further advice.
Understanding when and why to complain gives you the best chance of protecting your interests and securing a fair outcome.
How to Write a Letter to Complain About Energy Mis-Selling
Writing a clear and effective letter is an important first step if you believe you’ve been a victim of energy mis-selling. Here’s a step-by-step guide to help you draft your complaint, along with practical tips to make sure your concerns are taken seriously.
1. Gather Your Information
Before you start writing, collect all the relevant details about your account and the mis-selling incident. This includes:
Your full name and address
Your account number (found on your bill or contract)
The name of the energy supplier and, if possible, the salesperson involved
Dates and times of any relevant conversations or visits
Copies of contracts, emails, or other evidence
Having these details ready will make your complaint clearer and easier for the company to investigate.
2. Structure Your Letter
A well-structured letter is more likely to get a prompt and helpful response. Consider using this format:
a. Your Details:
Start with your name, address, and contact information. Include your energy account number for easy reference.
b. Description of the Issue:
Explain clearly what happened. For example, “On 10 March 2024, I was contacted by your sales representative who told me I would save money by switching tariffs. However, after switching, I discovered the tariff is actually more expensive than my previous plan.”
c. Evidence of Mis-Selling:
List any evidence you have, such as written promises, misleading statements, or comparison figures. Attach copies if you’re sending the letter by post or email.
d. The Resolution You Want:
State what you would like the company to do. This could be switching you back to your previous tariff, cancelling a contract, or providing compensation.
e. Request for Response:
Ask for a response within a reasonable timeframe, such as 14 days.
3. Keep Your Letter Clear, Polite, and Factual
Be concise: Stick to the facts and avoid emotional language.
Be polite: A courteous tone helps maintain a constructive dialogue.
Be specific: Refer to dates, names, and documents where possible.
Here’s a simple example to get you started:
“I am writing to complain about the way your services were sold to me. On [date], I was advised that switching to your tariff would save me £X per month. However, I have since discovered this is not the case. Please find attached copies of my previous and current bills.”
If you’d like a ready-made template, you can find a selection of energy complaint letter templates to help you get started.
4. Sending Your Letter and Keeping Records
Send your complaint to the supplier’s official complaints address (check their website or your contract).
Send by recorded delivery if posting, or request a read receipt if emailing.
Keep copies of your letter and any replies you receive.
Record dates of all communications for your records.
Keeping a clear record of your complaint is important if you need to escalate the issue to the Energy Ombudsman or another body later on.
For more guidance and templates, visit our energy complaint letter templates page, where you’ll find additional advice on writing effective complaints and next steps if your issue isn’t resolved.
Sample Letter Template for Energy Mis-Selling Complaint
Sample Letter Template for Energy Mis-Selling Complaint
If you believe you have been mis-sold an energy contract, sending a clear and well-structured complaint letter is an important first step. Below is a practical template you can adapt to your situation. This example shows how to explain the issue, request a refund or contract cancellation, and set a deadline for response. Including any evidence you have – such as emails, call logs, or contract documents – will strengthen your case.
When writing your complaint, it’s helpful to refer to your rights under the Consumer Protection from Unfair Trading Regulations 2008, which make it illegal for suppliers to use misleading or aggressive sales tactics. Energy suppliers must also follow Ofgem’s rules on treating customers fairly.
[Your Name]
[Your Address]
[Postcode]
[Email Address]
[Phone Number]
[Date]
Customer Services
[Energy Supplier Name]
[Supplier Address]
[Postcode]
Subject: Formal Complaint – Energy Mis-Selling
Dear Sir or Madam,
I am writing to formally complain about the way I was sold my current energy contract (account number: [insert your account number]).
On [date], I was contacted by your representative. During our conversation, I was told [explain what you were told – e.g., that the new tariff would be cheaper than my current deal, or that I had to switch to avoid extra charges]. Based on this information, I agreed to switch to your service.
However, I have since discovered that [explain what was misleading – e.g., the tariff is actually more expensive, the promised discounts do not apply, or I was not given accurate information about contract terms]. I believe this is a clear case of mis-selling under the Consumer Protection from Unfair Trading Regulations 2008.
I am requesting the following resolution:
That my contract is cancelled without penalty, and/or
That I am refunded any additional costs I have incurred as a result of this mis-selling
I have attached copies of [list any evidence you are including, such as emails, call recordings, promotional materials, or bills] to support my complaint.
Please investigate this matter and provide a full response within 14 days, as recommended by Ofgem’s complaint handling guidelines. If I do not receive a satisfactory response, I will consider escalating my complaint to the Energy Ombudsman.
Yours faithfully,
[Your Name]
Tips for Using This Template:
Replace the details in brackets with your own information.
Be as specific as possible about what was said or promised.
Attach copies (not originals) of any evidence you have.
Keep a copy of your letter and any correspondence for your records.
By clearly stating your complaint and desired outcome, you give the supplier a fair opportunity to resolve the issue. If you do not receive a satisfactory response, you have the right to take your complaint further.
What to Expect After Sending Your Complaint
What to Expect After Sending Your Complaint
Once you have sent your complaint letter about energy mis-selling, it’s important to know what typically happens next and what your rights are throughout the process. Here’s what you can expect:
How Energy Suppliers Usually Respond
Most energy suppliers are required to acknowledge your complaint promptly, often within a few working days. They should then provide a full response – sometimes called a ‘final response’ – within eight weeks. This is the maximum time allowed under industry guidelines for most energy complaints. During this period, your supplier may contact you for more information or clarification about your concerns.
Investigation and Possible Outcomes
After receiving your complaint, your supplier will investigate the issues you’ve raised. This may involve reviewing your account, checking sales records, and speaking to the sales agent involved. They should keep you updated throughout the process.
Possible outcomes of your complaint can include:
An apology and explanation of what went wrong
Correction of any errors on your account
Cancellation of a contract agreed to under misleading circumstances
Refunds or compensation for any financial loss or inconvenience
Your rights are protected under UK consumer law, including the Consumer Contracts (Information, Cancellation and Additional Charges) Regulations 2013, which set out the information you should receive before entering a contract and your right to cancel if you’ve been misled.
If You’re Not Satisfied With the Response
If your supplier does not resolve your complaint to your satisfaction, or if they fail to respond within eight weeks, you have the right to escalate the issue. In such cases, you can complain to the Energy Ombudsman. The Energy Ombudsman is an independent body that can review your case and make a decision, which may include ordering the supplier to take action or provide compensation.
The Role of the Energy Ombudsman
The Energy Ombudsman will look at all the evidence from both you and your supplier. Their service is free for consumers, and their decision is binding on the supplier if you accept it. This provides an extra layer of protection if you feel your complaint hasn’t been handled fairly.
Next Steps
Keep records of all communication with your supplier, including dates and copies of letters or emails. If you need to escalate your complaint, these records will help support your case. Remember, you have strong legal rights under the Consumer Contracts (Information, Cancellation and Additional Charges) Regulations 2013 if you have experienced energy mis-selling.
For more guidance on how to escalate your complaint, see how to complain to the Energy Ombudsman.
Additional Resources and Related Letters
Additional Resources and Related Letters
If you’re dealing with energy mis-selling, you may also face other related issues. Below, you’ll find helpful letter templates, advice on managing energy disputes, and information on other utilities and safety concerns. These resources can support you in protecting your consumer rights and resolving problems effectively.
Useful Letter Templates for Energy Issues
Sometimes, energy mis-selling is linked to other problems, such as an unauthorised switch to a new supplier. If your energy account has been transferred without your permission, you can use our letter to complain about transfer without consent to formally raise the issue with your supplier.
If you find yourself owing money to your energy supplier – perhaps because of inaccurate bills or charges following mis-selling – our letter for repaying debt to your energy supplier can help you set up a manageable repayment plan and communicate your circumstances clearly.
For those with prepayment meters who want to change suppliers after a mis-selling experience, the letter to switch energy supplier if you have a prepayment meter provides a template to request a switch and ensure your rights are respected.
Managing Related Problems
Energy mis-selling can sometimes lead to broader financial or contractual issues. If you’re a small business owner, you may have additional concerns about your business energy bills or supplier contracts. Our guide on dealing with your business energy bills offers practical advice, including how to challenge incorrect charges, negotiate payment terms, and understand your legal protections under the Microbusiness Consumer Protection rules.
If you’re considering making an insurance claim due to losses or damages caused by energy mis-selling, our resource explains the basics of consumer insurance rights and how to approach your provider.
Complaints About Other Utilities
Energy mis-selling isn’t the only issue consumers face with utility providers. If you need to complain about your phone, TV, or internet bill, you can use our letter to complain about a phone, TV or internet bill. Many of the same principles apply, including the right to accurate information, fair billing, and clear contracts under the Consumer Rights Act 2015.
Electrical Safety for Tenants and Consumers
Whether you’re a tenant or a homeowner, electrical safety is essential – especially if you suspect your supplier’s actions have put you at risk. Our guide to electrical safety in UK rental properties explains your rights and responsibilities, including the legal obligations of landlords under the Electrical Safety Standards in the Private Rented Sector (England) Regulations 2020. Knowing these rules can help you take action if your property isn’t safe or if mis-selling has led to unsafe installations.
By exploring these additional resources and letter templates, you can address a wide range of energy-related issues and ensure your consumer rights are protected. If your complaint isn’t resolved, remember you may be able to escalate it to the Energy Ombudsman or seek further legal advice.
