From Which? Scamwatch:
By the end of this year, the average family of four will have spent ?785 more on their energy than in 2019? an increase of 57%. To help customers cope, there have been several government grants and discount schemes, alongside a flurry of communication and money saving tips from energy companies ? not all ofit welcome. Ovo was forced to apologise after it advised some customers to ?cuddle with your pets? tostay warm. But some advice could be worse than patronising. This year there's been a significantincrease in scammers impersonating energy firms, trying to trick victims into handing over money orpayment details.
It?s possible you?ve received an email offering an energy refund. In these emails, fraudsters posed as major supplier Eon to claim that the recipient was entitled to an ?85 refund. ?Our system indicates that an error in our billing procedures has led to an overcharge,? the email announced, before urging you to click on a link and enter your banking details to get your money. The email rightlyraised flags with recipients for the simple fact that many of them aren?t even supplied by Eon. Scammers sent out the email en masse in the knowledge that at least some inboxes would belong to Eon customers. Your energy supplier already has your payment details and so will never send an unsolicited email or text requesting these.
As it?s common practice for energy suppliers to include links in their emails, scammers can sometimes ?spoof? organisations using an email display name of their choice, so make sure you always read the full underlying email address of the sender, instead of just glancing at the display name. And don?t be afraid to call your energy supplier, using the number on its website, to check what you?ve been told.
In May, we received an email claiming to be from energy regulator Ofgem, offering a rebate. The email linked to a convincing fakeOfgem site requesting you set up a direct debit to receive the money. Although households are receiving,,rebates on council tax and a ?400 discount on energy bills this year, these are being applied automatically.
Then there?s energy saving devices. Just imagine a small plug-like device that could shave ?up to 90%? off your energy bill, reducing it from ?251 a month to just ?15 a month (that?s actually 96% off). But ?Big Energy? doesn?t want you to know and is desperate to destroy it. This isn?t the plot of a low-budget sci-fi film, but instead a real claim made by a website. The device it?s marketing is called Voltex, which was also previously marketed under the name Motex, although Motex has now been withdrawn from sale due to ?security concerns?.
The collapse of many smaller energy companies in recent years has created billing confusion that scammers have swiftly capitalised on. In January 2022 we received two such reports from former customers of Brilliant Energy, which ceased trading in 2019. Both had received, out of the blue, an apparent debt demand from one ?ABD Debt Recovery?, claiming they had outstanding balances on their Brilliant accounts. The emails addressed each customer by name and demonstrated knowledge of their former supplier. More worrying still, online reports indicated that ex-customers of defunct firms Solarplicity, Future Energy and Northumbria Energy have also been individually targeted. How did the crooks know customers? names? It?s difficult to pinpoint the source of the leak because, as is commonwhen energy firms cease to trade, customer data passes through many hands. These include energy brokers, mailing houses, new suppliers, billing consultants and debt collection agencies. If your energy supplier ceases trading, it will be swiftly taken over by an Ofgem-appointed successor firm, which
manages your account and acts as a point of contact for verifying any payment requests you then receive. Contact regarding outstanding balances or credit should be received a few months down the line, not out of the blue three years later, as in this case. Be very wary of any emails
Never sign up to anything on the strength of an unsolicited doorstep encounter or cold call; instead read online reviews. Get written quotes andstudy the T&Cs carefully, ensuring you pay via a secure method. Rather than bank transfer, use a credit card, or a debit card or PayPal if credit isn?t an option. Consult your local authority?s website for reliable information about green schemes operating nationally or in your area, and the legitimate tradersproviding them.
Energy scams, like investment scams, are nothing new. Titled ?Get more on your savings!?, an advert which claimed to be from SSE offered a sustainability-linked bond? which would be invested in renewable energy. The criminals behind the email abused not only SSE?s logo but also that of US bank Wells Fargo, which it implied was backing thebonds. They made modest promises of interest ranging from 1.75% to 3.74%, making them look moreconvincing. When researching investments, always consult the FCA?s Warning List, then check if the firm is listed on the FCA?s Register and confirm that the contact details you?ve been given match those on the register. It?s far safer to find sustainable investment funds or trusts via an investment platform or by using an independent financial adviser who is a member of the UK Sustainable Investment and Finance Association.
In May 2022, Ofgem warned of claims circulating on social media that you can save money on energy bills by tampering with your meter. And Martin Lewis, founder of MoneySavingExpert.com, has warned of a conspiracy theory doing the rounds which incorrectly asserts households are being charged simply for having a meter. In 2018, a Leicester resident was given a three-year prison sentence for twice tampering with the gas meter in his flat. Investigators said his actions could have caused a huge explosion. If you suspect a meter has been tampered with, you can report it anonymously to Stay Energy Safe on 0800 023 2777. If you smell gas, open doors and windows, turn the gas off - if you can do so safely - exit the property and call 0800 111999.