Endesa fined €30,000 for signing new customers 'by deception'

Consumer watchdogs FACUA, OCU and CECU have said they are 'not surprised', as they 'regularly' receive reports from householders who have been approached by salespersons either on the doorstep`or by telephone.

The usual technique is to ask the customer if they want to save money on their electricity bills, and asking them for a copy of their latest statement from their provider to show them where they can cut costs.

“No utility board will send someone to check a bill that they have sent themselves,” the OCU warns.

Some householders are told the new company will 'scrap their standing charges', which is impossible, because these are dictated by the State and not the firm – the only difference, the OCU says, is that these fees are not broken down separately in bills from non-State providers.

Other salespersons have told householders they will pay a flat fee every month for their power, avoiding fluctuations, but in practice bills usually rise and many customers have found their low-income discount has disappeared as a result.

Normally, doorstep salespersons scan a copy of the householder's bill on their tablets, which is enough to get to their name, address and national ID number, although sometimes they also scan copies of the person's ID card in addition.

Many customers have said that after the salesperson did this, they later received a letter 'confirming' the transfer to the new electricity board, even though they had not knowingly given their permission.

Some sellers gain access to a person's home by claiming they have come to repair the electricity metre or, when asked via the intercom system who they are, simply say 'the electrics', leading the occupant to believe they are letting in someone who is merely reading their meter.

Householders have reported pressure to sign on the dotted line on the doorstep or to give their permission immediately during the initial sales call, being told they will lose a series of special discounts if they do not.

The OCU, FACUA and CECU warn that any customer who feels 'pushed' into an acceptance should insist on being given time to consider the offer and phone or email the company later – any resistance to this, or further pressure to make a snap decision, should cause alarm bells to ring loudly.

Already, in 2017, the National Markets and Competition Commission (CNMC) fined four electricity suppliers – Endesa, Iberdrola, Gas Natural and Viesgo – a total of €155,000 for similar deceptive practices in acquiring new customers.

Two years earlier, the CNMC had launched a series of 'good practice' recommendations on sales and treatment of consumers, which included being very careful, explicit and transparent when signing up new customers during home visits or by telephone, especially in the case of vulnerable persons, such as the elderly.

Customers have the right to freely elect their electricity supplier, and the supplier must, in turn, comply with all contract conditions and place the power of decision-making in the customer's hands.