Energy mis-selling has become a significant issue in the UK, with thousands of consumers misled by misleading sales tactics, confusing tariffs or misinformation from energy suppliers and brokers.
As people look to manage rising energy costs, mis-selling tactics have unfortunately taken advantage of this situation, leading many consumers into contracts they don’t fully understand or that cost far more than expected.
From misleading “fixed-rate” deals to greenwashing claims, energy mis-selling has become a growing issue, affecting households and businesses alike, and for many consumers, the process of navigating energy choices is already complex, with aggressive or deceptive practices only adding to the confusion.
In response, consumer advocates, regulatory bodies and industry watchdogs have increased their efforts to protect the public in an effort to raise awareness of common mis-selling tactics and pushing for stricter accountability.
This blog explores some real-life examples of energy mis-selling in the UK, drawing on well-documented cases, recent regulatory actions and consumer campaigns that have made headlines, in the hopes that by understanding these scenarios, consumers can better recognise potential red flags and make informed choices that truly benefit them in the long run.
“Fixed Rate” Tariff Misunderstandings
In one prominent case reported by The Guardian in 2021, a pensioner was signed up to what she believed was a fixed-rate tariff, only to find her rates fluctuating within months, despite the supplier’s representative assured her that the rate would remain stable for two years. Then, with energy prices rising, her bills increased, and the customer eventually found herself unable to pay her bills, facing mounting debt.
There is a lesson to learn here, as many consumers fall for the idea of “fixed rate” tariffs without realising that some energy companies offer partially fixed tariffs that can change based on market prices. This practice has raised enough concern for Ofgem, the UK’s energy regulator, to issue guidance about ensuring clarity around contract terms and conditions.
The Cold Calling Crisis
A BBC investigation in 2022 revealed that vulnerable customers, particularly the elderly, were being cold called by third-party brokers claiming to represent well-known energy brands. These brokers used high-pressure sales tactics to convince customers to switch energy providers, promising lower bills and improved service, and unfortunately, many of these contracts were either not affiliated with the stated brands or included terms that hiked prices after an introductory period.
One notable case involved a retired couple who were sold a contract during a cold call from a supposed “energy advisor”, who were later billed nearly twice their previous rate, leading to distress and financial strain.
This situation prompted further calls for energy sales reforms and tighter control over third-party brokers operating on behalf of energy companies, and a key takeaway from this is to always check the legitimacy of any energy provider or broker calling with “too good to be true” deals, especially if you haven’t requested a callback.
Since, Ofgem has launched campaigns such as the Energy Switch Guarantee, to promote safe switching practices and reduce the likelihood of these incidents.
False Discounts and Loyalty Rewards
In another case documented by Which?, customers reported being enticed by “exclusive loyalty discounts” offered to longstanding customers as an incentive not to switch providers, however, an investigation found that many customers were actually paying more than new customers on identical or better tariffs.
One specific case involved a customer of a major energy provider who had remained loyal for over 10 years, when they were offered a so-called loyalty discount, only to discover that switching to a competitor would have saved them hundreds of pounds annually.
This prompted Which? to launch a campaign urging energy companies to automatically switch loyal customers to their best available tariffs, and in terms of regulatory impact, these practices have led to calls for energy firms to provide clearer information about loyalty tariffs, particularly for vulnerable consumers. So much so that in 2023, the Big Energy Saving Week campaign encouraged consumers to compare tariffs and to avoid accepting loyalty discounts without thorough research.
“Green” Energy Misrepresentations
With increasing interest in environmentally friendly options, “green energy” tariffs have become popular, however, some suppliers have been accused of greenwashing, which means they have falsely marketed their tariffs as more environmentally friendly than they really are.
In one example, The Guardian revealed that an energy provider was promoting its tariff as 100% renewable, despite only a fraction of the energy actually being sourced from renewables. The rest was purchased through “Renewable Energy Guarantees of Origin” (REGOs) certificates, which do not guarantee that the energy supplied to the customer was generated from renewable sources.
This revelation led to a regulatory crackdown on greenwashing by Ofgem and pressure from environmental advocacy groups like Green Alliance, who campaign for transparency in green tariffs. As a result, consumers were urged to scrutinise claims about renewable tariffs and to choose providers genuinely committed to renewable energy sources.
Energy Company Obligation (ECO) Scheme Misuse
The UK government’s Energy Company Obligation (ECO) scheme is designed to help consumers improve energy efficiency through measures such as insulation and boiler upgrades, though some companies have been found to mis-sell ECO-related services by exaggerating benefits or misleading customers about eligibility.
In one case reported by MoneySavingExpert, a company cold-called households, offering “free” boiler upgrades under ECO, only to charge hidden fees and upsell unnecessary repairs once on site. This then led to a £500,000 fine against the company by the Advertising Standards Authority (ASA) and prompted calls for stronger oversight of government-backed schemes to prevent exploitation of vulnerable customers.
Meter Misrepresentation
But above all, one of the most common mis-selling practices involves smart meter installations, where some energy providers claimed smart meters were “mandatory,” pressuring customers into accepting installations without explaining that they are actually optional.
A study by Citizens Advice in 2022 found that nearly 60% of respondents felt pressured to install smart meters despite not wanting them, with some companies even threatening that refusal could lead to higher bills.
In response, Citizens Advice began educating consumers about their right to decline smart meters without penalty, and Ofgem also issued stronger guidelines to ensure consumers are given clear, accurate information before making decisions.
How amberis Can Help
At amberis, we understand how overwhelming and distressing mis-selling practices can be, and whether it’s being pressured into unnecessary contracts or misled on terms, our team is here to assist clients affected by energy mis-selling.
To do this, we offer expert guidance in navigating complex energy contracts and provides resources to challenge unfair practices, and our teams specialise in supporting clients seeking fair compensation, ensuring you’re not stuck in a contract that’s misrepresented or misleading.
Get in touch today to learn more about our range of products and services that protect your rights as an energy consumer.
Let amberis help you take control and make sure you’re getting exactly what you’ve signed up for.
