Ofgem investigates four energy firms

Ofgem has launched an investigation into four energy companies amid concerns of mis-selling to consumers. The energy regulator said it was prepared to take "strong action" if it found that npower, Scottish Power, Scottish and Southern Energy and EDF Energy were failing to comply with new obligations to prevent mis-selling.

It has set up a hotline – 08454 040506 – for consumers who are concerned about the sales approach employed by suppliers to sell energy contracts, either face to face or by telephone.

The move follows tougher obligations imposed on suppliers in October as part of Ofgem's investigation into the energy retail market. Its spokesman Andrew Wright said: "Suppliers have existing obligations to detect and prevent mis-selling, and new licence conditions were brought in following our probe to further increase protection for customers. We expect all suppliers to comply with these tougher obligations, but if our investigations find otherwise we will take strong action."