Fed Up Consumers Slam Door on Energy Salesmen
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Released
on: September 25, 2009, 6:40 am
Author: uSwitch.com
Industry: Energy
uSwitch.com, the independent price
comparison and switching service, is calling on industry regulator
Ofgem to bring out tougher rules and regulations to govern energy
doorstep and direct salesmen, after new research revealed that
their sales tactics are leaving people feeling pressured, intimidated
and on the wrong energy plan for their needs.
According to the research, almost
7 million UK households have taken out an energy plan on their
doorstep or through a direct salesperson. However, less than a
quarter of people who have done so (22%) believe they got a good
deal. Of these, only 6% said that it reduced their bills significantly
while just 16% said that they were very pleased with the deal
they took up. On the flip side, 17% found that their new deal
cost them more money than the one they switched from and almost
a quarter (22%) said that they could have done better elsewhere.
Over four in ten people (44%)
think that direct sellers on their doorstep, high street, at the
local supermarket and on the phone are a nuisance. But for some
consumers it crosses the line into something altogether more sinister
with 22% finding salespeople intimidating and 59% finding the
process too pressured, preferring time to think and make their
own mind up.
More than a third of people (37%)
think that salespeople don't present them with enough information
to make an informed choice, while almost half (45%) don't like
the fact that salespeople only represent one energy supplier -
they would prefer to know what all the companies are offering
instead.
As a result of growing unease
and, in some cases, outright distrust, 82% of consumers would
not buy directly from a salesperson. Almost a third (32%) would
like to see tighter regulation, but over half (53%) would like
to see the practice banned. Despite the fact that many elderly
and vulnerable customers prefer to buy face-to-face or with direct
human contact, almost three quarters of consumers (72%) say that
direct selling does not have a valuable role to play in helping
these groups to switch.
According to Ofgem, over half
of consumers who switched in the past year did so through a direct
or doorstep seller and vulnerable and prepayment meter
customers are more likely to switch in this way. This suggests
that rather than an outright ban, the regulator should be looking
to keep open this important route to market for vulnerable consumers,
but make sure they are fully protected and able to get the same
level of information as those consumers who are able to shop around
or do their own research.
Although Ofgem is bringing in
rules to ensure that direct sellers have to provide consumers
with a written quotation, uSwitch.com would also like to see consumers
given more information about the types of deals available to them
and a prompt to research the market before signing on the dotted
line.
Ann Robinson, Director of Consumer
Policy at uSwitch.com, says: "It is good news that Ofgem is
acting on this, but far more needs to be done to protect consumers
and to make sure they are given all the information needed so
they do not end up out of pocket. At the moment consumers are
running scared of doorstep sellers and quite rightly so. With
the right rules in place direct selling could be an effective
way of reaching a wider range of consumers and encouraging people
to switch to a better energy
deal. It could particularly help the vulnerable and elderly
who like the reassurance of face-to-face contact and are the groups
missing out most on the benefits of a competitive energy market.
"Ofgem must make doorstep and
direct selling transparent and fair for consumers. There has to
be clear rules on what salespeople can and can't do. People will
now be given written details of the energy tariff on offer and
allowed time to decide whether it is right for them. But ideally
they should also be prompted to research other energy plans before
signing on the dotted line. People should not feel under pressure
or intimidated by direct sales people into making a decision on
their doorstep.
"Consumers
also have to understand that if they are only being told about
one deal from one supplier they are highly unlikely to be getting
the best available deal on the market or even one that suits their
needs. Energy tariffs are based on so many different factors including
where you live, how you like to pay and what your usage is - without
these details a salesperson cannot sensibly recommend an energy
plan to you. With £395 between the most competitive online energy
plan and the most expensive standard plan, there's a lot of scope
to lose money if you don't do your homework first."
For
more information please contact: Jo Ganly 0207 802
2915 / joganly@uswitch.com
http://www.uswitch.com/
About
uSwitch: uSwitch.com is a free, impartial online and
telephone-based comparison and switching service, helping consumers
compare prices on gas, electricity, water, heating cover, home
telephone, broadband, digital television, mobile phones, personal
finance products and car insurance.