Energy accounts switched without consent

THE SLEEPY energy regulator, Ofgem, admits that around 74,000 gas and electricity accounts were wrongly transferred last year. It says four-fifths were through “poor data” held by providers or human error but that still leaves 20 per cent deliberate malpractice.

If it is not to lose all credibility, it must intervene far more quickly and properly punish those responsible. Those running some of the energy companies need not only to have substantive fines levied but be made personally responsible.

The lucrative trade has spawned 178 electricity and 159 gas providers but many clearly do not have proper management operations in place.

Toto Energy is one such company. Until recently it was registered in Leeds and has now switched to Brighton. It claims that by moving both energies will bring savings “on average over £250”.

Its welcome pack issued last year pledged no price rise for 12 months but the true position is that it has imposed a 30 per cent increase.

The firm now calls this a computer mistake and will adjust bills. It has deducted payments on a monthly basis but not provided invoices to substantiate the charges.

Many of its ‘customers’ have not given permission to switch from their current energy provider which appears to have been the result of overenthusiastic commission-based sales people.

Complainants are told a switch made to their original provider can take up to nine weeks.

Fair competition in this denationalised industry should bring better, not worse, customer service. Tariffs should be easily understood and comparable between providers.

Switching should be far easier than present and a leaf could be taken out of the current account arrangements between banks. Savings should be possible but the public now lacks confidence.

Ofgem must act urgently to stop this practice.