Regulator Ofgem fines Scottish and Southern Energy firm £10.5million

Scottish and Southern Energy, or SSE, have been fined over mis-selling.

16:09 03 April 2013

One of the ‘big six’ energy companies in Britain has been fined a record £10.5million by watchdog Ofgem for mis-selling to customers. The penalty issued to Scottish and Southern Energy (SSE) is considered to be the ‘largest fine’ given to ‘energy suppliers’. 

SSE are claimed to have carried out “prolonged and extensive” errors when giving out certain details to individuals, which relates to why the regulator has issued the fine. This relates to information being dispensed on savings and prices, according to Ofgem. 

 

Reportedly the firm discussed with possible new customers the topic of moving from their current energy supplier to SSE based on the information the sales representatives were giving. 

 

It is believed the areas in question when it came to customer dealings were SSE’s calls, store and door-to-door sales processes. 

 

Ian Marlee, of Ofgem , said on BBC Radio 4’s Today: “This fine represents the fact that what they were doing was allowing a culture of mis-selling to continue, they weren't doing enough to prevent sharp selling practices from their selling agents, they actually provided misleading sales scripts. 

 

Adding: “People were expecting savings and were not getting the levels of savings.” 

 

Mr. Marlee said: “What we need and what we expect from energy companies is they have a culture of putting consumers first and complying with the rules.” 

 

Scottish and Southern Energy, or SSE, which was known as Scottish and Southern Energy plc, is a utility group with headquarters in Britain. It has been recognised as being one of the leading energy firms for the UK with regards to gas and electricity