Big Six energy provider SSE is to be investigated over its ‘cheapest tariff’ messaging made in annual statements to its prepayment customers.
Energy suppliers must provide customers with tariff information on annual statements, which includes whether they could save by switching to the supplier’s cheapest tariff.
However, energy regulator Ofgem will examine whether SSE failed to provide accurate information about the cheapest tariff customers could switch to and make savings.
In separate news, Ofgem has closed an investigation into the switching of around 1,800 SSE customers to prepayment meters in 2014 and 2015.
During the investigation, which opened in July 2016, Ofgem found that the supplier didn’t take some customers, including some who were in or at risk of falling into debt, through the appropriate processes before arranging with them to have a prepayment meter installed.
As a result, 337 customers who paid more as a result of having a prepayment meter installed will be refunded approximately £9 and receive £20 in compensation.
However, Ofgem says that due to the “relatively small number of affected customers” and because SSE has since improved its training and call-monitoring processes, formal enforcement action hasn’t been taken.