If you've been mis-sold an energy contract or been majorly out of pocket due to an incorrect energy bill, you may be able to get £100s back.
Energy company mis-selling has been rife, and it's time those out of pocket got their cash back. This is a full step-by-step guide, including free template letters to get your money back & possibly compensation on top.
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This is the first incarnation of this guide. Please feedback on how you find the info and if anything needs improving.
Energy companies rack up profits faster than Lewis Hamilton's final Silverstone lap, while their customer service often falls short. Yet few people know if they've dealt with you wrong - you do have rights!
This can be big money
Not only can you get back missed savings, compensation is also possible. £150 is the average payout if successful, but up to £5,000 can be awarded by the independent Energy Ombudsman. First complain to your supplier. If you don't get any joy after 8 weeks, take your complaint to the Ombudsman.
Here are a few success stories, but it's early days and we expect more to come in.
I got £200 back for a wrong transfer
I received a letter from my gas supplier EDF to say it was "sorry I was leaving them" but I hadn't applied to switch.
I rang EDF immediately but it was too late and the switch was already being processed.
After two months of EDF "investigation" it transpired I had been billed for my neighbour's gas as there was only one meter between us.
When a new family moved in downstairs and tried to switch to Scottish and Southern, they applied online and as my name was on the account, a letter sent to me regarding the switch.
EDF ended up refunding me £212.32 as a gesture of goodwill for all the hassle (my electricity bill for the last seven months).
This case study is from a member of the MSE Team.
I got £250 back for mis-selling
I was told I would be able to save by taking a dual fuel tariff during a phone call with a salesman.
12 months later I realised my direct debit had increased by £60 per month and I was locked into the tariff due to exit fees. After declining a £175 goodwill payment from the supplier, I went to the Ombudsman who decided the energy company failed to provide accurate information and mis-sold to me.
As well as not having to pay the exit fees, the Ombudsman awarded £250.
A goodwill cash payment & apology
Mrs Jones complained of inaccurate billing due to a faulty meter.
It was confirmed to Mrs Jones that it had been clarified that there was a software fault
with the meter that had previously recorded Mrs Jones' usage. The fault was that the meter
would freeze once it reached a certain total and then unfreeze again. The ombudsman
noted that Mrs Jones hadn't received good service. The ombudsman asked the company to
provide one final, amended bill and amend the final readings on the old meter. The
ombudsman also required the company to award a goodwill payment, arrange a payment plan and to send a letter of apology. "
How far back can you go?
The Energy Ombudsman is able to look at complaints within nine months of when you first noticed the problem.
So if your supplier made a mistake 10 years ago, you won't be able to claim back now. However, if you've only now looked back at your bill, from, say two years ago, and realised there's been an error, the Ombudsman may be able to look at your complaint.
Have you been mis-sold or mis-billed?
You can be due cash back whether your energy's been mis-sold or the bill's wrong. Either way the reclaim process is identical.
The energy mis-selling checklist
Check the list below to see if you may have been mis-sold to.
Before we start, remember: switching energy is usually the best MoneySaving thing to do, but not via a doorstep salesman; read the Cheap Gas & Elec guide for full details on how to find the best deal.
Did you switch on the door to Scottish & Southern Energy in 2009-2011?
Scottish & Southern Energy (including Scottish Hydro, Southern Electric, SWALEC and Atlantic) has launched a sales guarantee scheme, under which, anyone that switched to it via the doorstep between October 2009 and July 2011 may be able to get compensation.
It will be writing to everyone it thinks may be due compensation in January, in the mean time you can ring 0845 0707 388 to register your details. It says you must prove, from the details you supply, that you suffered financial loss.
SSE hasn't given many details but you may have a case if: you were told your direct debit would be lower, if they said Martin Lewis recommended us. you were switched without consent, ie, you signed a piece of paper you didn't realise was a contract. See the SSE Mis-selling Compensation news story.
Did they switch you without your specific permission?
Did the salesman ask you to sign something, saying it was the only way to give you a quote? Or did he say you were just signing to prove he had knocked on the door, and then you found yourself switched without further consent?
This is known as slamming and if it happens both your existing supplier and new supplier have joint responsibility to sort it out, and you shouldn't have to pay anything to the new supplier.
As a note, if they've forged your signature as it's a criminal offence you'lll get £250 compensation if it'ss proven.
What the rules say: Ofgem Licence Condition 25.5 c) ii says customers must understand they've entered into a contract.
Section 9 of the EnergySure code also states consumers must understand "they are entering into a contract to transfer their energy supply" and says when customers are signing a contract, it must clearly have the word CONTRACT visible.
If you didn't understand you'd be switching supplier, they should cancel the contract and you may be entitled to money back or compensation.
Did they lower the direct debit to make it seem cheaper?
Salesmen may ask you how much you currently pay for energy per month and simply set your direct debit at a lower amount to encourage you to switch. Yet this doesn't mean you'll pay less for your energy overall - that is about the rate you'll pay.
Direct debits can be set at any amount depending on how much energy your supplier thinks you'll use. All that happens with a low direct debit, is you'll have to catch up later in the year.
If a salesman's told you you'll pay less and you end up paying more this could be deemed as mis-selling by the Ombudsman.
What the rules say: Ofgem Licence Condition 25.1 a) states information given to the customer should be complete and accurate and not mislead the the customer.
Plus Licence Condition 25.6 says if the salesman tells you the new contract will be cheaper than what you pay now, he has to provide you with a comparison based on your current usage and costs. If he can't don't provide that info he has to give you a best estimate.
Case studies from the Ombudsman suggest setting a low direct debit in order to get you to switch is viewed as mis-leading.
Did they say 'Martin Lewis recommends us' or 'Ofgem sent us'?
We've been inundated with reports that salesmen have quoted MSE or Martin to encourage switching. Some say Ofgem, the independent regulator, has sent them.
MSE would never single out one energy company and name it as cheapest for everyone. The cheapest provider differs depending on where you live and how much energy you use, we always suggest using comparison sites. Salesmen are not allowed to use these incorrect lines to get you to switch.
What the rules say: The law says a contract may be set aside for misrepresentation. So this means if you've been led into a contract due to a false statement of fact (not opinion) you may be entitled to cancel the contract and get possible damages as well. Whether the misrepresentation was negligent, deliberate or innocent, doesn't matter.
Were you sold a fixed, capped or tracker tariff that wasn't explained?
A fixed tariff means you pay a set amount per unit of energy regardless of whether prices increase or decrease. Capped tariffs promise not to go above a certain limit and tracker tariffs usually follow just above or below standard rates (which in turn are decided by the supplier).
Were you sold a fixed or capped tariff but it wasn't fully explained what it was or how it works? Were you told that your prices wouldn't rise on a tracker tariff?
What the rules say: Ofgem's licence conditions state every energy supplier must provide information that is easily understood and doesn't mislead customers. Fixed & capped tariffs aren't straight forward and aren't suitable for everyone.
So if a salesman has not properly explained how a fixed or capped tariff works, you may be able to get compensation.
Were you not told about cancellation fees?
Many energy tariffs now have cancellation fees if you leave the tariff before the contract's due to end, these can be anything from £20-50 per fuel.
Salesmen have a duty to tell you about these before you sign up for a new contract. If a salesman hasn't done this, you may be due compensation.
What the rules say: Section 9.4 of the EnergySure code says that sales agents must take all reasonable steps to ensure the consumer has understood the existence of the right to cancel or terminate the contract including any charges or benefits forgone.
Did they not tell you how much you'd pay on the new tariff?
Door-to-door salesmen must provide an estimate of the cost of the new tariff there and then if you're signing up to a contract and in most cases you should also get a comparison against your existing tariff. If they're claiming you'll pay less they must provide a comparison based on either info you provide or their best estimate.
What the rules say: Ofgem's licence condition 25.6 a) says the representative must "provide, in writing or by means of electronic display, an estimate of the total annual charges for the supply of electricity".
Did they tell you about the cooling off period & how to cancel?
When you sign up for a new energy tariff online, over the phone or at your doorstep you must be given at least a 7 day cooling off period, which means you can cancel within 7 days. At the time you sign the contract the salesman must give you written notice of that cooling off period, if he doesn't the contract isn't enforceable.
What the rules say: The doorstep selling regulations (which apply to any goods & services worth more than £35) say the salesman must give you written notice about your right to cancel the contract within the 7 day cooling off period (some suppliers give more time), if it doesn't the contract is not enforceable at any time and you may be able to get compensation.
Share your successes in the
Energy Mis-Selling Discussion
The energy mis-billing checklist
With such over-complicated energy tariffs it's no surprise massive mistakes costing you £100s are made. Check the list to see if you may have been mis-billed.
Have you got a faulty meter you've complained about?
The key here is if you've complained to your supplier about a faulty meter already and they've done nothing, you should have cause for redress. If you've received a big bill due to this, you my not have to pay all of it, though the supplier's allowed to base bills on an estimate in this case.
What the rules say: The Back Billing Code says the supplier can't bill you for more than 12 months' energy in certain circumstances where it has made a mistake.
Has your supplier mixed up your day and night rates?
Some tariffs, called Economy 7, mean you get cheaper energy during off-peak night times, yet suppliers have been known to mix up rates and can charge your night time usage at the pricier day rate.
What the rules say: The Back Billing Code applies here, so you shouldn't be billed for the error for more than 12 months. It states the code applies when meter readings or meter details are transposed on the billing system, eg. night reads recorded as
day readings and vice versa and the supplier had the opportunity to recognise this but did not investigate further.
Have you given correct meter readings but still have a big bill?
If you've either given correct readings that have been ignored by your supplier or it's not maintained regular meter readings you may not have to pay back any arrears past 12 months.
What the rules say: The Back Billing Code should again apply here; it states where a customer has provided correct readings but a supplier has rejected them as invalid,
without investigation, eg. the customer or the meter reader has provided correct
5 dial readings. but the supplier believes the meter to be 4 dial and ignores without
further investigation you shouldn't be billed for energy used more than 12 months ago.
This is not an exhaustive list. If you’ve been treated unfairly at all follow the process.
Please report new scenarios in the Energy Mis-Selling Discussion
How to complain
Here's our step-by-step guide to getting your money back and compensation.
Step 1: You MUST first complain to your supplier
While you don't need substantial proof to get compensation, the more facts you have, the more likely it is your complaint will be resolved in the way you want. Gather old bills, contracts, times of sales visits and names of sales people if possible. Even if you noted something down on the back of an envelope, this will strengthen your case.
Take all the info you have and draft a letter of complaint to your supplier. For less serious complaints, call your supplier and explain over the phone, but ensure you note down times, dates and who you spoke to.
Details for the main energy companies: British Gas, EDF Energy, E.ON, Npower, Scottish Power, Scottish & Southern Energy.
Step 2: After 8 weeks go to the free Energy Ombudsman
The Ombudsman Service is an independent, official body, for settling disputes for the communications, energy, property and copyright licensing sectors. The service it provides is completely free.
It has legal power to adjudicate on individuals' complaints or complaints from small businesses. And there's no negative outcome, you cannot be awarded against, the worst that can happen if the Ombudsman says you've no case.
If, after eight weeks your supplier hasn't got back to you or you've reached a deadlock you can take your complaint to the independent Energy Ombudsman if your supplier participates in the scheme (see the Energy Ombudsman for a list). It'll review your case and decide on an appropriate course of action, often including an apology and a payment if there is sufficient evidence to support your side of the story.
While each supplier has to have a strict complaints policy, if you've complained and your supplier doesn't agree with you, that's not a reason not to take it to the Ombudsman.
You can complain to the Ombudsman over the phone, on its website or via the post. It will need to know:
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The date you first complained.
What you and the firm have done about the problem.
What you want as a resolution to the problem.
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If you are asking for an amount of money, what that's based on.
It's a fairly simply process and shouldn't take you long to complete. The Ombudsman will send a confirmation letter and get back to you if it needs any more information.
Share your successes in the
Energy Mis-Selling Discussion
