Zapped! Watchdog cuts rogue energy salesmen’s lifeline: Shock for cold-callers who charge firms high fees to trap them in costly contracts

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The Big Six energy suppliers will be forced to cut their links with ‘rogue’ brokers who trap companies in costly long-term contracts, under plans to be unveiled by the watchdog this week.Ofgem will lay out its proposal for a mandatory code of practice that energy brokers will have to sign up to.Suppliers including British Gas, Eon, npower, SSE, ScottishPower and EDF will be required under their licences to only sell through firms which adhere to the code.Businesses have long been vulnerable to sharp tactics by unscrupulous energy brokers, also known as third party intermediaries.

Many have found themselves trapped in costly long-term contracts after being cold-called by brokers, or have ended up paying high fees for their service.

In many cases, companies are victims of high-pressure sales tactics, while in other instances brokers have claimed to be from Government-backed organisations, misleading businesses into believing they must change supplier.

via Zapped! Watchdog cuts rogue energy salesmen’s lifeline: Shock for cold-callers who charge firms high fees to trap them in costly contracts | This is Money.

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