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PS6259-PS9834-PS10114-PS10338 - Unsolicited energy contracts: the ICA ensures consumers’ consent and opens new investigations


PRESS RELEASE


PRESS RELEASE

 

UNSOLICITED ENERGY CONTRACTS: THE ICA ENSURES CONSUMERS’ CONSENT AND OPENS NEW INVESTIGATIONS

The ICA goes all out in defence of consumers for unsolicited activations in the supply of energy and gas.

In recent weeks, the Italian Competition Authority (ICA) concluded its verifications concerning the compliance with resolutions imposed on ENEL Energia, ENI, ACEA Energia, HeraComm and Geko (former Beetwin) for carrying out aggressive commercial practices. The latter consisted in the activation of gas and electricity supplies in the absence of consumers’ consent or in the presence of an unaware consent. Following the ICA’s intervention, the procedures adopted by the mentioned companies have the aim to ensure, from now on, informed consent for the activation of a new supply. In the case of telesales (telephone sales), these procedures specifically include:

  • putting at consumers’ disposal the supply contract (through e-mail or in hard copy), before the final confirmation of consumers’ consent to conclude the agreement;
  • putting at consumers’ disposal the recording of the telephone call with which the consent to enter into the agreement is acquired, before this is concluded, as well as the telephone call confirming the conclusion of the agreement;
  • the acquiring of explicit consent to the waiver of the written confirmation for telephone sales.

The companies shall also set up control points for the consent acquisition process so as to intercept the contracts that are unsolicited or entered into without an adequate awareness of the contractual bond.

The companies also improved the procedures for controlling agents by introducing tools aimed at avoiding the subscription of subjects not explicitly authorised by the subscriber of the supply and the uploading onto contactors’ systems of contracts drawn up in the absence of any contact with the consumer.

Moreover, in accordance with the provisions of the Consumer Code, Enel Energia, Eni, Acea Energia, HeraComm and Geko have provided that, in the event of an unsolicited activation of the supply of electricity or gas (both via telephone or door-to-door agents) the consumer is not obliged to pay anything. In fact, the mentioned companies are setting up procedures aimed at establishing, in case of complaints or disputes, whether the activation took place without the consumer’s consent. This also so as to avoid opportunistic behaviours.

Despite these interventions, the ICA continues to receive many reports from individual consumers, consumer associations, micro-enterprises and competitors complaining unsolicited activations. For this reason, the Authority deemed necessary to continue the enforcement activities within this scope of intervention.

To this end, the Italian Competition Authority, chaired by Giovanni Pitruzzella, has launched non-compliance proceedings against Green Network, which - unlike the above-mentioned companies - has failed to comply with the ICA’s sanctionary decision.

Furthermore, between 6 and 13 July, the Authority launched three new proceedings to establish possible violations of the Consumer Code in the practices of four companies operating in the retail sale of electricity and natural gas, that is: Estra Energie, Estra Elettricità, Enegan and Iren Mercato.

Even in these cases, the practices challenged concern as follows: the activation of supplies in the absence of a contact with consumers or their expression of willingness; the drawing up of contracts on the basis of misleading and omissive information concerning the purpose of the contact, the company’s identity, the specifications and the price of the offer, the possibility to exercise the right to withdrawal and the procedures for exercising such right; payment requests for the unsolicited supplies, even against consumers’ complaints. Moreover, the company’s procedures for acquiring consent do not seem to comply with the formal requirements laid down for telesales by the Consumer Code.

Inspections at the contractors’ premises were carried out in all the above mentioned cases with the collaboration of the ICA’s Special Unit of the Guardia di Finanza.

Rome, 1 August 2016