Press Release
19th November 2002
Utility Mis-selling a
"Lose / Lose Situation" – McNeil
The scandal of mis-selling
utilities will hit the wallets of power companies and their
customers unless action is taken to restore public confidence in
the industry, an MSP will tell the Scottish Parliament tomorrow.
[Wednesday 20th November.]
MSP for Greenock & Inverclyde, Duncan McNeil, will issue the warning when the Parliament debates his motion condemning the "high-pressure selling tactics employed by representatives of certain utility companies."
He said:
"If my post-bag is anything to go by, the mis-selling of utilities is inflicting unnecessary distress on many vulnerable people. Companies of course have a perfect right to sell their products. They even have the right to let your tea go cold while you answer their early evening sales calls. But underhand tactics are not on.
"If public confidence in the utility companies is not to collapse, action must be taken. I therefore look forward to using this debate, not only to raise the concerns of my constituents, but to discuss the way forward."
He continued:
"If we hear nothing but horror stories about people being transferred without their knowledge or being bullied into signing a form they haven’t read, who in their right might would think about changing supplier? This image of the industry will not only lead to energy companies finding it harder to attract new customers, but will discourage consumers from using the market to find the deal which is right for them.
"At the moment, we are looking at a lose / lose situation. That is why I will be using the debate tomorrow night to call for all interested parties – the power companies, the consumer groups, the Executive and others – to get round the table and make a concerted effort to drive underhand sales practices out of the industry."
ScottishPower and industry watchdog, energywatch Scotland, have both joined Mr McNeil in welcoming the decision to debate the motion.
John Hanlon, chair of the Scottish National Committee of industry watchdog energywatch Scotland, said:
"There is no doubt over the extent of this problem. The irresponsible mis-selling of utilities is causing upset, inconvenience and worry throughout the country.
"Energywatch welcomes Duncan McNeil's debate. We look forward to it making clear to the Parliament, the power companies and the people that the days of underhand sales techniques are numbered."
Also welcoming the debate, ScottishPower’s Director of Community and Business Relations, Hammy Smillie, said:
"ScottishPower will not tolerate mis-selling. We recognise that this is an industry wide problem and that is why we are working closely with all interested parties to help stamp it out.
"ScottishPower were instrumental in setting up the EnergySure scheme which for the first time officially recognises and accredits energy sales teams across the UK. We now have better training, higher standards and tougher discipline for agents employed by ScottishPower.
"By the end of the year ScottishPower will only employ agencies and staff who are fully accredited by this scheme.
"ScottishPower welcomes this debate and we are actively working together to rid the industry of the scourge of mis-selling."
Mr McNeil was prompted to call for a debate after hearing – from both sides of the doorstep – first hand accounts of the cynical practices used by the some utility company sales agents.
He said:
"Like many MSPs, I have received a number of complaints from constituents about the high-pressure, aggressive selling techniques of cold-calling salesmen.
"And, from the other side, one former salesmen shocked me with his account of the sharp practices he was forced to employ to cajole customers into switching suppliers. He made a number of very serious allegations, including that he was given, without any Police vetting, a fake identification card.
"Thankfully, following my demand that this be fully investigated, I have been informed that Scottish Executive officials have contacted the industry regulator and that the company in question is now under investigation.
"But restoring our confidence in the
utilities market is about more than rooting out the odd cowboy
operator. It will require a major, concerted effort by all
involved. I hope that this debate will go some way towards
that."
ENDS
Notes
The full text of the motion reads:
*S1M-3486# Mr Duncan McNeil: Mis-selling of Utilities—That the Parliament notes the proposal of energy regulator, Ofgem, to penalise London Electricity for failing to prevent its sales staff from mis-selling products to customers; expresses concern over the high-pressure selling tactics employed by representatives of certain utility companies; believes that vulnerable members of the public are entitled to protection from such practices; seeks clarification over what safeguards are currently in place and how these are enforced, and considers that the industry, the Scottish Executive and all interested parties should undertake a concerted effort to put an end to underhand sales practices and restore public confidence in the utilities market.
The debate will take place at 17:00 on Wednesday 20th November 2002 in the main chamber of the Scottish Parliament.
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