Small supplier Economy Energy is under investigation for the way telesales staff arranged contracts and to check whether if customers were misled.

Energy watchdog Ofgem will look at whether Economy Energy complied with its licence conditions when marketing gas and electricity to customers before February 2014.

The firm promotes itself as no frills, stating on its website it has “no expensive offices, advertising campaigns, glossy brochures or gimmicks”.

What appear to be customer testimonials on the site heap praise on the supplier, with one from a Michael Williams of Nottingham stating: “I was this close to cancelling because I had never heard of you. You said if you don’t try new things how do you know? So I did and am really glad I did.”

As ELN reported earlier this year, the supplier was rebuked by regulator Ofgem after complaints it was blocking some customers from switching.

At the time Economy Energy ignored our repeated efforts to contact senior management.

The supplier came under the spotlight once again this week as Ofgem announced it is investigating whether it has breached the licence conditions which allow it to operate.

Ofgem is checking all the information it gives to customers via marketing or telesales is:

– “complete and accurate” and capable of being easily understood;

– not misleading and fair in its content and how it is presented;

– and whether representatives “behave in a fair, transparent, appropriate and professional manner.”

ELN has contacted Economy Energy for a response.

• Economy Energy, investigation, licence conditions, Ofgem, telesales