In response to this morning’s announcement from Ofgem, Martin Lewis, founder of MoneySavingExpert.com, comments on the news of the compliance action taken against E.ON and Npower.
Martin Lewis, the founder of MoneySavingExpert.com, said; “The rules are simple. Energy firms cannot charge exit penalties in the last 49 days of a fixed tariff. We have reported many examples of providers misleading customers about this, with incorrect literature. This puts people off switching and therefore, often results in them paying far more than they should.
“It’s good to see the regulator dealing with the first of these – Npower and E.ON – and I wait to see how it’ll deal with British Gas, which has done similar.This should be seen as a shot across energy firms bows, they cannot be allowed to pervert the market this way. If it happens again, full-scale formal action and fines are needed.
“Energy firms often complain that their customers don’t trust them. Trust doesn’t come from improving your marketing, it comes from being trustworthy.And this announcement is proof they have a long way to go to get there."
About Martin Lewis: Martin Lewis OBE, Money Saving Expert, is the journalist and consumer campaigner who created MoneySavingExpert.com and is now the site’s Executive Chair. Martin also founded and chairs the Money and Mental Health Policy Institute charity.
He’s the UK’s most-googled man, Citizens Advice’s Consumer Champion of the Year, and has spearheaded major financial justice campaigns including bank charges reclaiming (over seven million template letters downloaded), PPI reclaiming (over six million) and a successful large-scale campaign to get financial education in schools. He has his own prime-time ITV programme, The Martin Lewis Money Show, as well as a range of other regular media slots. He was appointed OBE in the Queen’s Birthday Honours in June 2014.
About MoneySavingExpert.com: MoneySavingExpert.com is dedicated to cutting consumers’ bills and fighting their corner. The free-to-use consumer finance help resource aims to show people how to save money on anything and everything, and campaigns for financial justice. It was set up in 2003 for just £100, and its free-to-use, ethical stance quickly made it the UK’s biggest independent money website, according to internet ranking site Alexa.com, and the number one ‘Business and Finance – Business Information’ site, according to Hitwise. It has more than 12 million people opted-in to receive the weekly MSE’s Money Tips email, and more than 16 million unique monthly site users who visit more than 28 million times a month. In September 2012, it joined the MoneySupermarket.com Group PLC.