Scottish Power tells CMA it backs doorstep selling

Energy retailer Scottish Power has backed the use of doorstep sales to better engage with inactive customers who are otherwise difficult to reach.

In its final written submission to the Competition and Markets Authority (CMA) before its summer report on the ongoing probe, Scottish Power stopped short of calling for a return of doorstep selling but urged the regulator to consider the benefits to offers in terms of engaging with those consumers without internet access.

“It would be useful for the CMA to consider whether the use of face-to-face sales techniques could play a role in enhancing competition for consumers who are currently hard to reach via online or telephone sales channels, while ensuring appropriate consumer protection,” the supplier said.

Scottish Power added that customers who are struggling financially are only “slightly more likely” to be considered sticky energy customers, with a similar trend seen in those over the age of 65 or with limited qualifications.

The largest predictor of a disengaged customer is internet access with 75 per cent of those without found to have not switched in the last three years or even considered switching.

“This suggests that the ending of face to face sales is likely to have had a significant effect on engagement,” Scottish Power said.

In a separate CMA submission former regulator Stephen Littlechild told the CMA that the end of doorstep sales may have accelerated a decline in switching, but added the lower rates had already begun three years before.

“There is now little enthusiasm for the resumption of this activity,” Littlchild said.

The controversial practise of marketing energy deals door to door has resulted in multi-million pound fines for the big six energy companies, including an £8.5 million Ofgem penalty levelled against Scottish Power in 2013.

Scottish Power was not alone in facing Ofgem enforcement and most major suppliers put an end to their direct sales strategies in the autumn of 2011, with Eon shutting its doorstep operations in July 2012.

Scottish Power said that if the CMA opted to bring a return of doorstep activities Ofgem would need to loosen regulation in this area to allow it to be carried out efficiently and cost effectively, while protecting consumers.

In addition, the public would need to be informed about the benefits of doorstep sales.

“Even if compliance problems can be overcome, a widespread return to face-to-face selling is unlikely without a shift in political and media opinion,” Scottish Power said.

A full analysis of the big six CMA submissions is available here.