Over 230 residents residing in Stoke-on-Trent are preparing to launch a class action lawsuit against the city council, alleging that they were “mis-sold” 25-year solar power contracts, leading to faulty panels and unexpected bills. Council house tenants claim they were deceived into signing up for the contracts without full understanding and have been facing subpar customer service and installations (Guardian).
The Community Energy Scheme (CES) was introduced in 2018 through a collaboration between the city council and Solarplicity Energy. The scheme aimed to encourage residents to adopt solar panels and has attracted 4,800 customers in the city. However, many tenants expressed that they believed they were only agreeing to have their homes evaluated for solar panel suitability when they signed contracts on an iPad with CES staff.
Cassandra Burton, a 50-year-old resident, shared her experience of feeling taken advantage of when a CES representative visited her home. She thought it was merely a survey, and she unwittingly signed up for a 25-year contract without proper disclosure. Similar stories emerged from other residents, including Bibby Thomas, 58, who said that she signed the contract despite being dyslexic, unaware that it was a lengthy commitment.
Due to the mounting concerns raised by the customers, CES offered three options: to retain their current contract, switch to a revised contract with clearer language and terms, or exit the agreement and revert to receiving electricity solely from the grid.
CES insisted that the 25-year term was stated on the website, literature, contracts, and communicated by sales teams. They claimed that all tenants received a letter from the council outlining the scheme before signing up, and most tenants received a verification call to ensure they were adequately informed.
The Stoke-on-Trent city council, run by the Conservative party, granted Solarplicity Energy exclusive rights to install panels on council properties, sharing details of over 1,000 suitable homes for £100 per installation. As a result, solar panels were also installed on empty council houses, making it a requirement for prospective tenants to join the solar energy scheme.
Labour councillor Desiree Elliott criticized the scheme, calling it a “failure and a scandal from the beginning.” She asserted that the company involved demonstrated a lack of professionalism in handling a project of this magnitude.
Residents claimed that they were promised solar panels with batteries to store surplus energy for use during evenings and darker days. However, batteries have only been recently introduced, with 200 tenant properties receiving them since 2020.
In 2019, Solarplicity Energy ceased trading due to criticism from Ofgem and the Energy Ombudsman, who received thousands of complaints about the company. Despite the switch to a different supplier, tenants still remain bound to the 25-year CES contracts.
A spokesperson from the Stoke-on-Trent city council stated that the scheme aimed to help tenants reduce energy bills and carbon emissions, which is particularly crucial amid significant energy price hikes.
A CES spokesperson defended the initiative, emphasizing their efforts to provide sustainable and affordable energy to those who might otherwise miss out. They acknowledged the concerns about contract language accessibility and offered tenants the choice of how to utilize the solar energy generated from their homes. The spokesperson assured continued support for those interested in accessing solar energy.
What do you do if you are mis-sold energy?
If you believe you have been missold energy or suspect that you are being overcharged or deceived by your energy supplier, you should take the following steps to address the issue:
- Gather evidence: Start by collecting all relevant documentation, including bills, contracts, and any correspondence with the energy supplier. This evidence will be essential when discussing the issue with the supplier or making a complaint.
- Contact the energy supplier: Reach out to your energy supplier directly and explain the situation. Politely state your concerns and provide the evidence you have gathered. They may be able to resolve the issue promptly. Contact information for your supplier should be available on their website or your energy bills.
- Complain formally: If you don’t receive a satisfactory resolution from your initial contact with the supplier, it’s time to make a formal complaint. Most energy suppliers have a complaints procedure outlined on their website or in the terms and conditions. Follow their process and provide them with all the necessary evidence.
- Escalate the complaint: If the complaint remains unresolved or if the supplier doesn’t respond within a reasonable time frame (usually eight weeks), you can escalate the complaint to the Energy Ombudsman (or relevant regulatory authority in your country). The Energy Ombudsman is an independent service that helps resolve disputes between consumers and energy suppliers.
- Seek assistance from consumer advocacy groups: In some countries, there are consumer advocacy groups or governmental bodies that can provide support and advice regarding energy-related issues. Check if there is any relevant organization in your area that can assist you in resolving the matter.
- Consider switching suppliers: If you are consistently dissatisfied with your current energy supplier or suspect that you are being treated unfairly, you may want to consider switching to a different supplier. Look for reputable suppliers with positive customer reviews and transparent pricing structures.
- Stay vigilant: Keep a close eye on your energy bills and usage to ensure that you are being charged correctly. If you notice any irregularities or sudden increases in your energy costs, investigate the matter promptly.
Remember that misselling energy is a serious issue, and energy suppliers should operate ethically and transparently. By taking these steps, you can protect your rights as a consumer and ensure that you are being charged fairly for the energy you consume.
For more on mis-selling, visit: https://www.energybrokers.co.uk/news/electricity/energy-mis-selling-how-much-are-you-due