SSE fined £10.5m for mis-selling: How to claim compensation

[Michael Browne]

Energy supplier SSE has been fined £10.5m by the regulator Ofgem for mis-selling gas and electricity.

 

The fine is the largest ever imposed on an energy supplier by Ofgem.

 

In its statement, Ofgem said SSE, formerly known as Scottish and Southern Energy, was guilty of management failures that led to "prolonged and extensive" mis-selling.

 

SSE said it was "deeply regretful" about the mis-selling, and apologised to its customers.

 

The mis-selling related to telephone, in-store and doorstep sales, Ofgem said.

 

It said customers contacted by SSE were exposed to misleading statements, inaccurate and misleading information on SSE's charges, and misleading comparisons between SSE's charges and costs of other suppliers.

 

Some customers were told they would save money when in fact they were switched onto a more expensive contract.

http://www.bbc.co.uk/news/business-22011717

 

 

SSE customer compensation: key questions answered

Find out what will happen to customers who were mis-sold policies.

 

http://www.guardian.co.uk/money/2013/apr/03/sse-customer-compensation-key-questions-answered

 

 

Ofgem press release:

http://www.ofgem.gov.uk/Media/PressRel/Documents1/SSE%20Press%20Release.pdf

 

Ofgem:

Report listing 18 specific breeches

http://www.ofgem.gov.uk/About%20us/enforcement/Investigations/CurrentInvest/Documents1/Notice%20of%20Intention%20to%20impose%20a%20financial%20penalty%20on%20SSE%203%20April%202013.pdf

Edited April 3, 2013 by Michael Browne

[postggj]

£10.5 million, and who do you think will end up paying for that, the consumers through tariff changes

 

Same when the rail companies got fined for those accidents through cost cutting

 

Until fines are made statutory, and in a court of law, which affect the business in a financial sense, these penalty sanctions are no more than hot air.

[Surfer01]

How does this fine benefit the consumer as all SSE do is hike up their prices? I think a better option is to freeze prices until the amount lost profit is equal to the fine.