UK Utilities Companies to Be Investigated by Ofgem

Ofgem, British energy regulator, recently announced that it has launched an investigation, which is supposed to reveal whether 4 leading UK gas and energy suppliers are meeting their obligations.

These 4 companies are EDF Energy, Scottish and Southern Energy, Iberdrola's Scottish Power and RWE Npower. The regulator will investigate the selling practices of these companies to determine whether they comply with the obligations introduced a year ago with a view to protect UK households against mis-sold contracts.

Commenting on its decision, Mr. Wright of Ofgem said that the organisation aims to protect customers. Leading UK customer protection groups warmly welcomed the move and said that utilities firms have to be controlled to avoid mis-selling of products to Brits. As such, Audrey Gallacher of Consumer Focus said that customers are often being provided with misleading quotes when they compare gas price, which is a bright example of utilities mis-selling.

Let us remind that earlier in 2008 Ofgem fined Npower and London Electric for £1.8 million and £2 million accordingly.