WIREDGOV

Ofgem has closed an investigation into SSE’s practices around switching some of its customers to prepayment meters (1). This relates to around 1,800 customers who had prepayment meters installed between 2014 and 2015.  

Ofgem found that the supplier didn’t take some customers through the appropriate processes before arranging with them to have a prepayment meter installed, including some who were in or at risk of falling into debt (see examples below, footnote 2). 

SSE has since improved its training and call monitoring processes to make sure that its advisors treat customers who are struggling to pay their bills fairly. It has offered to compensate 337 customers who paid more as a result of having a prepayment meter installed (see examples below, footnote 3).

Ofgem has closed this case without taking formal enforcement action, taking into account the steps that SSE has since taken to improve its performance and the relatively small number of customers affected.

Notes to editors

1. Ofgem opened this investigation in July 2016 in response to concerns that, between August 2014 and January 2015, SSE may not have been treating its customers fairly when switching them to prepayment meters.
2. Our investigation found evidence that:

• SSE’s advisors did not routinely offer customers struggling to pay their bills the option to have their energy charges deducted directly from social security benefits through the ‘Fuel Direct’ scheme
• SSE’s advisors did not consistently assess in full these customers’ ability to pay when agreeing  debt repayment plans
• SSE did not provide customers with clear and comprehensive written details of certain disadvantages of prepayment meters, for example, the loss of paperless billing and direct debit discounts
• SSE wrote to customers in advance of prepayment installations promising access to SSE’s “cheapest” tariffs. However, 337 customers began paying more than they previously had, having had a prepayment meter installed. This indicates that these customers did not have access to the cheapest tariffs.

3. SSE has since taken the following steps:

• retraining staff on assessing customer’s ability to pay, and offering customers the option to pay their bills using the ‘Fuel Direct’ scheme
• monitoring calls between advisors and customers in payment difficulty, to help improve staff performance
• refunding customers who paid more having had a prepayment meter installed (approximately £9 per customer) and paying £20 in compensation to each customer
• offering customers who had switched to a prepayment meter, where appropriate, the option to have a credit meter installed at zero cost.

4. Ofgem is satisfied with the steps that SSE has taken and has now closed this case. 

Further information

For media, contact:

Ruth Somerville: 0207 901 7460

Media out of hours mobile: 07766 511470 (media calls only)

For investors, contact:

Martin Young: 0207 901 7114 

About Ofgem

Ofgem is the independent energy regulator for Great Britain. Its priority is to make a positive difference for consumers by promoting competition in the energy markets and regulating networks.

For facts, figures and information about Ofgem’s work, see Energy facts and figures or visit the Ofgem Data Portal. 

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