Industry reacts to the continuation of cold calling

Ann Robinson, director of consumer policy at Uswitch.com, said: “Anything that makes people aware of the fact that there is a better offer out there and a better deal for them is to be welcomed. I think cold calling can have its advantages but it is reality important when people are doing cold calling or when people do receive that kind of call that it is done properly. So even when people cold call, they should still give them a written quote and ask all the right questions and not be just say a consumer will be better off on a better deal without finding out what their usage is.

“But if it is done properly and people are given a proper written quote I think that could be helpful because it might just make people aware of the fact that there are better deals and actually with one or two people they might just take that written quote and think “ok, I’ve got that now lets look around and see if there is anything even better”. So it is got to be a positive in terms of helping to make the market work.

“The negative as far as I’m concerned is that it is very intrusive and it does worry a lot of people, especially if they are living on their own. It panics people, and sometimes it is done badly, so it is not all plus. But if it is done properly and if in making the cold call, a written quote is given and it is explained that it might be worth using that as a basis to shop around to make sure they are absolutely certain they’ve got he right deal, it can only be a good thing really.”

Maria Wardrobe, Director of External Affairs, NEA: “With around 3.2m fuel-poor households in England and energy bills continuing to rise, it is of course vital that householders are aware of how they can save money, whether through improving the energy efficiency of their home or changing to a cheaper or more suitable tariff. Cold-calling however, is not an effective way to achieve this for vulnerable consumers. As well as general concerns about the appropriateness of contacting vulnerable households in this way, research by NEA has shown that this type of communication is unwelcome, mistrusted and ineffective. Energy companies recognise that working through trusted intermediaries such as community-based and voluntary organisations, is the best way to convey their key messages effectively and appropriately.

“NEA is working with a range of organisations and agencies to raise awareness of the advice and assistance available in a way that is readily accessible to those most in need so they can act upon it.

Adam Scorer, director of policy and external affairs at Consumer Futures, said: “This is good news from some energy suppliers – nuisance calls can be immensely frustrating for consumers and are usually a poor way for people to make good decisions. We need to see other suppliers follow suit. It could be one small step toward a better relationship between consumers and their energy suppliers.”

An Information Commissioners Office spokesperson said: “The public have told us that they are fed up with being contacted by companies carrying out nuisance calls. It is pleasing to see that these businesses have listened to the concerns of the general public and have acted.

“While companies are able to make live marketing calls, people can opt out of receiving them by signing up with the Telephone Preference Service (TPS), or informing the company directly that they do not wish to be contacted in future. If someone continues to be contacted after this point then they can submit the details using the online reporting tool available on our website.

“We have already received over 200,000 responses from the public, who have used the tool to share the details of the nuisance calls and texts they are receiving. This information has helped us to issue monetary penalties totalling £800,000 in the past year against companies who continue to breach the law.”

Gillian Guy, chief executive of national charity Citizens Advice, said: “Cold calling is intrusive and annoying. People are sick of having their time wasted by out of the blue sales calls.

“We see people who have been given misleading information about the amount of money they could save on their energy bills when they have been cold called in the past. Energy companies should be working hard to rebuild the trust of consumers. The decision made by SSE and Eon to stop cold calling is the right one and now we’d like to see other energy firms do the same.”

Age UK’s private sector policy programme manager, Barbara Limon, said: “Energy firms have a poor track record with regard to the doorstep selling of tariffs so we are disappointed that four out of the Big Six will continue to cold call potential customers.

“The cost of energy is a significant issue for many older people and while we encourage older people to seek out better deals to reduce their bills, cold calling isn’t the best way for older people to get the information they need to make a truly informed choice about which energy supplier and tariff is right for their needs.”

Richard Lloyd, Which? executive director, said: “In the space of just one month, we found more than eight in ten (85%) of us received an unsolicited call and, of those, at least one in 10 (8%) were called 50 times or more. That is why we launched our Calling Time campaign, which so far more than 84,000 people have supported, to help us put an end to nuisance calls and texts.

“Our research shows the energy industry is one of the main culprits for cold calling. Some people find it useful to deal with companies by phone but people who don’t want to be contacted should be left in peace and that is why we want the Government to take action.

“After finding less than a fifth (17%) of consumers officially complain about nuisance calls, we’ve made it much more straightforward to report them. Our easy to use web page directs consumers to the relevant regulator’s complaint form in a matter of seconds. Importantly, this will give regulators the information they need to take enforcement action against companies found breaking the rules so we can put an end to the menace of nuisance calls and texts once and for all.”