SSE pays up more than £650,000 in compensation for consumer switching blunders

A Perth-based Big Six utility has paid £190,000 in compensation to customers over failures following its withdrawal of a ‘white label’ partnership tariff with Ebico, the social enterprise.

At the end of 2016 Ebico terminated its partnership with SSE. In February 2017, SSE withdrew the white label tariff with Ebico from the market.

Suppliers have 49 days to move customers onto another tariff when a tariff is withdrawn from the market. SSE took almost six months, failing to comply with its licence, in part while it considered other options for their customers.

Some customers who were switched ended up on a cheaper tariff, but lost money they would have saved due to the delayed switch. SSE paid £190,000 to these customers to compensate for this delay.

Other customers who were switched ended up paying more on the tariff. SSE made a goodwill gesture payment of £475,000 to this group of customers.

SSE compensated all affected customers, set up a dedicated customer support team for those querying the compensation value and a support fund for customers requiring further compensation.

Due to the steps SSE has taken in co-operating in compensating affected customers, regulator OFGEM has not taken formal action against the supplier.

29 Jun 2018

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