The gas and electricity regulator, Ofgem, has fined the energy supplier SSE (formerly Scottish and Southern Electricity) £10.5m following an investigation into a period of poor management which led to individuals
and businesses being mis-sold services.The regulator has said that the misleading of customers and potential customers took place over the phone, in stores as well as on door-step sales beginning in 2009. The fine, Ofgem says, is reflective of the length of time that this continued and the severity by which it believes the mis-selling to be. The regulator found numerous examples of where individuals had been encouraged to switch to SSE believing they would pay less than by staying with their current supplier, when actually they ended up paying more. It has said “SSE consistently failed, over a prolonged period of time, to conduct its sales activities in a way that would provide clear and accurate information on prices and potential savings to enable customers to make an informed decision about whether to switch suppliers.”
The fine will be paid directly to the Treasury as currently the government is not able to force companies to compensate consumers directly. However, there are changes in the pipeline as part of the proposed energy bill that this will change and consumers will be able to receive compensation.The contents of this article are intended for general information purposes only and shall not be deemed to be, or constitute legal advice. We cannot accept responsibility for any loss as a result of acts or omissions taken in respect of this article. Setfords Solicitors are a national full service law firm, with solicitors in Goring and across the country.