UK energy firm fined £250k for mis-selling


A UK energy firm has been told to pay £250,000 for mis-selling contracts and management failings.
Economy Energy did not have adequate processes and procedures in place between October 2012 and December 2013, according to Ofgem.
The energy supplier mis-sold contracts during the same period and didn’t make clear to customers that they would be signing up to a 12-month contract.
The compay has paid more than £23,000 to around 500 customers and the regulator expects the supplier to do more to identify and compensate any remaining affected householders.
Economy Energy also failed to give advance notice of price increases in April and November 2013 affecting up to 70,000 customers, according to Ofgem.
Anthony Pygram, Ofgem’s Senior Partner with responsibility for enforcement said: “Economy Energy let its customers down badly. These were predominantly prepayment customers who are more likely to be vulnerable and Economy Energy failed to protect them.
“Economy Energy has taken steps to improve its practices during the investigation. We now expect it to treat its customers fairly and act in line with its obligations at all times.”