Power giant abandons doorstep selling

SCOTTISH & Southern Energy is to abandon the old-fashioned practice of door-to-door selling, saying that there had been a breakdown in confidence among consumers.

Up to 900 jobs are set to go as a result of the move, which will see doorstep selling abandoned immediately.

The decision comes two months after the company was found guilty of using doorstep salesmen to mislead potential customers in a case brought against it by Surrey County Council. It is currently appealing the verdicts.

Commission-based doorstep selling has ceased to be an effective way to gain customers for the long term, the firm said, adding that trends had changed since the household gas and electricity supply markets in Britain opened up to competition in the 1990s.

"Confidence in the way companies sell energy on the doorstep, and the way in which salespeople are remunerated, is low," the Perth-based firm said.

Consumer groups welcomed the move, but called for reassurances the firm would not simply shift its efforts to other forms of cold calling.

"SSE has recognised that the energy market has moved on and that consumers now need a more holistic approach to getting the best value from suppliers and information and support on reducing their energy usage," said Tom Lyon, energy expert at uSwitch.com. "This is vital in today's high cost energy world."

SSE said it would consult with affected staff in a bid to redeploy workers to other parts of the business.

In 2010-11, about 45 per cent of SSE's total customer gains in Britain came from doorstep sales, the company said.