Ofgem will investigate whether SSE failed to provide accurate information on annual statements about the cheapest tariffs available to customers, as required by the regulator’s licence conditions.
The information companies must provide includes the tariff customers are on, details of their annual spend and whether they can save by switching to the supplier’s cheapest tariff, if they are not already on it.
“This gives customers the crucial information they need to manage their account, and helps prompt them to switch supplier for a better deal. Suppliers are also required to take all reasonable steps to provide information that is complete, accurate and not misleading,” Ofgem said.
But it acknowledged the opening of the investigation “does not imply” it has made “any findings about non-compliance”.
A customer first approached Ofgem about the matter in July. On the same day the regulator opened the investigation, it closed another (unrelated) investigation, which dated back to July 2016, into SSE’s processes around switching customers to prepayment meters.
The investigation related to around 1,800 customers who had meters installed between 2014 and 2015.
Ofgem found SSE did not take some customers through the appropriate processes before arranging with them to have a prepayment meter installed, including some who were in or at risk of falling into debt.
But it said the supplier has since improved its training and call monitoring processes, to make sure its advisors treat customers who are struggling financially fairly. It has offered to compensate 337 customers who paid more because of having a prepayment meter installed
“Ofgem has 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,” the regulator added.