SSE fined £1million for ‘misleading’ 580,000 customers about switching to a cheaper tariff
The energy company sent letters to 580,000 pre-payment customers which overestimated how much they could save if they switched deals
SSE has been fined £1million by the energy watchdog after it sent "inaccurate and misleading" information about how much customers could save by switching tariffs.
The annual statements overestimated the annual savings that customers could make by swapping to one of its deals.
The energy firm sent out 1.15million letters to 580,000 pre-payment metre customers between June 2014 and September 2015.
They contained "inaccurate" information on the alternative cheaper tariffs available if they swapped to a credit meter and paid by direct debit.
Ofgem launched an investigation into the supplier in November last year after SSE reported the issue, which they put down to an IT error.
The watchdog said that "only a small proportion" of customers would have acted on the information and as a result, not many people would have been affected.
The ruling by the watchdog felt that the "level of harm was low" so customers who have been affected won't be getting a payout.
Instead, the £1million fine will be given to a consumer redress fund, controlled by the Energy Saving Trust, which supports vulnerable customers.
Ofgem found that the energy firm "failed to act promptly" because it didn't realise early enough that the error had happened.
SSE has improved the processes, like carrying out extra checks on letters before they are sent, to make sure that a mistake like this doesn't happen again.
LATEST ON ENERGY BILLS
Earlier this month SSE became the last of the Big Six to put up energy bills for millions of customers.
The changes come into effect from July 11 and will see 2.36million customers forking out an extra £76 a year on their bills.
Another 4.1million British Gas customers will also be hit with a rate rise which will see their bills rise by £60 a year.
And more than 960,000 households who get their energy from Scottish Power will see another £63 a year added on to their bills as of June 1.
How to switch suppliers and save £300
SWITCHING suppliers is the best way you can cut your energy bills. But recent research from MoneySuperMarket found that households are throwing away up to £300 a year by not bothering. Here's what you need to do.
1. Shop around - If you're on an expensive Standard Variable Tariff (SVT) deal you are throwing away up to £300 a year. Use a comparison site like MoneySuperMarket.com or EnergyHelpline.com to see what best deals are available to you.
The cheapest deals are usually found online and are fixed deals - meaning you'll pay a fixed amount usually for 12 months.
2. Switch - When you've found one, all you have to do is contact the new supplier.
It helps to have the following information to hand - which you can find on your bill - to give the new supplier:
- Your postcode
- Name of your existing supplier
- Name of your existing deal and how much you pay
- An up-to-date meter reading
It will then notify your current supplier and begin the switch.
It should take no longer than three weeks to complete the switch and your supply won't be interrupted in that time.
For more advice read our guide on how to switch.
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