£2m fine for energy giant

One of the country's biggest gas and electricity suppliers faces a £2million fine after rogue salesmen tricked and misled customers.

The landmark fine would be imposed on the LE Group which owns London Electricity and 75 per cent of Virgin HomeEnergy.

In many cases customers were switched to these suppliers without their knowledge as sales staff used details obtained from the electoral register to fill out transfer forms. Children were tricked with CD offers into signing forms transferring their parents' accounts.

Bereaved people were told their partners had switched suppliers. There were cases of plain forgery. The LE Group did not have systems to prevent mis-selling.

This is the first time energy regulator Ofgem has used powers which came into force this year. Ofgem chief executive Callum McCarthy said: "They are in clear breach of the rules. This sends out a strong signal to any other companies performing badly in this area."

The fine follows a fourmonth investigation by Ofgem.

Many salesmen were on short contracts or worked for sub-contractors. LE Group chief executive Vincent de Rivaz insists new management has now eradicated mis-selling. The fine does not relate to the LE Group's other power brands, including SWEB and Seeboard.