SSE has paid £665,000 in compensation after taking almost six months to switch customers on to a new tariff, following the end of its 'white label' partnership with Ebico.
In total, 35,000 customers were affected. Around 9,000 customers split £190,000 in compensation. These customers moved on to a cheaper deal than the Ebico tariff after it ended, but lost money due to the delay to the switch.
A further 29,000 customers will share £475,000 in goodwill payments, as they were moved on to a more expensive deal after the Ebico tariff ended.
Ebico ended the while-label agreement - where one provider supplies another’s energy under its own brand - at the end of 2016, with the tariffs it offered withdrawn in February 2017. Ebico has since agreed a new partnership with Robin Hood Energy.
Suppliers are required to move customers on to another tariff within 49 days when a tariff is withdrawn from the market. SSE took nearly six months, according to regulator Ofgem.
As SSE has taken steps to co-operate with Ofgem, and contact and compensate affected customers, the regulator has decided not to take formal action against the supplier.
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What does SSE say?
Gareth Wood, director of customer service operations, said: "We’re disappointed not to have met the high standards expected of us in this instance, but took voluntary action to put things right and ensured any customers facing detriment were identified, contacted and compensated in full.
"In addition, we voluntarily decided to credit customers who had actually benefited from the delayed migration. We’re pleased that Ofgem is satisfied the matter has been resolved and has now closed the case."