Ofgem launches new SSE investigation

Ofgem yesterday closed one case against Perth-based energy giant SSE – but opened another.

The regulator announced that it would take no further action against SSE for failing to take some customers through appropriate processes around switching to pre-payment meters.

This affected around 1,800 customers who had pre-payment meters installed between 2014 and 2015.

Ofgem found the supplier did not take some customers through the appropriate processes before arranging with them to have a pre-payment meter installed, including some who were in or at risk of falling into debt.

SSE has since improved its training and call monitoring processes to make sure that customers who are struggling to pay their bills are treated fairly by its advisers.

It has offered to compensate 337 customers who paid more as a result of having a pre-payment meter installed.

Ofgem closed this case without taking formal enforcement action, taking into account the steps that SSE has since taken to improve its performance and the relatively small number of customers affected.

However, the regulator has launched an investigation into SSE’s ‘cheapest tariff’ messaging in annual statements sent to its pre-payment customers.

The probe will examine whether SSE failed to provide accurate information about the cheapest tariffs that customers could switch to and make savings.

Meanwhile, British Gas owner Centrica has said it will scrap standard gas and electricity tariffs (STV) for new customers ahead of Government plans to impose a price cap on the costly energy products.

The Big Six energy supplier has also vowed to introduce simpler bills and a new fixed-term default tariff for customers who do not shop around for the best deal once their tariff finishes.

The energy giant called on the Government and energy watchdog Ofgem to engage with it over the reforms to help create a fairer market without enforcing price controls.

It urged Ofgem to follow its lead and remove STVs from the energy market to encourage more customers to switch tariffs.

Ofgem closed its investigation into how SSE switched some of its customers to pre-payment meters.