03-04-2013, 09:09 AM
Now it's SSE's turn to get slapped on the wrist.
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 relates 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.
SSE stopped doorstep sales in 2011, but mis-selling continued in stores and over the phone.
Ofgem said the fine reflected the severity and duration of the breaches.
'Clear message'"Ofgem's findings show SSE failed its customers, mis-sold to them and undermined trust in the energy supply industry," said Sarah Harrison, Ofgem's senior partner in charge of enforcement.
"These failings did not just take place on the doorstep but also in the management of SSE. Ofgem's fine reflects an absence of effective management control over energy selling."
She said the fine sent a "clear message" to energy suppliers who failed to treat customers fairly.
Ofgem told the BBC the fine would be paid to the Treasury, as the regulator does not have the power to force energy companies to reimburse customers.
However, SSE has created a £5m mis-selling fund from which affected customers can receive compensation.
The company told the BBC that it had sent out nearly a million letters about this since early last year, and had so far paid out £400,000.
The SSE case is the second of four mis-selling cases that were launched by Ofgem in 2010.
In March 2012, EDF Energy agreed to pay £4.5m pounds to vulnerable customers following breaches to marketing rules.
Investigations into Scottish Power, Npower and E.on are continuing.
*
Still, SSE is "deeply regretful" of its prolonged and extensive naughtiness, so that makes it alright then.
Not so long ago, with the mis-selling of financial products by one of the top Brit high street banks that was fined approx. £10 million, I tried to find out how much money the bank made from its mis-selling activities in order to judge if the fine was a reasonable expression of punishment. The Financial Services watchdog that imposed the fine didn't know, so I asked the bank itself. They responded by saying it was private information. I continued trying elsewhere. It became a lovely circular and endless two-step.
So, my guess is that the fine is simply a tiny fraction of the profits SSE made from mis-selling. And as we know from all the pols throughout history, is the punishment doesn't fit the crime, it becomes an effective unstated approval to continue the profiteering.
As usual, the main people scammed are the poorest in society.
SSE fined record £10.5m by Ofgem
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 relates 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.
SSE stopped doorstep sales in 2011, but mis-selling continued in stores and over the phone.
Ofgem said the fine reflected the severity and duration of the breaches.
'Clear message'"Ofgem's findings show SSE failed its customers, mis-sold to them and undermined trust in the energy supply industry," said Sarah Harrison, Ofgem's senior partner in charge of enforcement.
"These failings did not just take place on the doorstep but also in the management of SSE. Ofgem's fine reflects an absence of effective management control over energy selling."
She said the fine sent a "clear message" to energy suppliers who failed to treat customers fairly.
Ofgem told the BBC the fine would be paid to the Treasury, as the regulator does not have the power to force energy companies to reimburse customers.
However, SSE has created a £5m mis-selling fund from which affected customers can receive compensation.
The company told the BBC that it had sent out nearly a million letters about this since early last year, and had so far paid out £400,000.
The SSE case is the second of four mis-selling cases that were launched by Ofgem in 2010.
In March 2012, EDF Energy agreed to pay £4.5m pounds to vulnerable customers following breaches to marketing rules.
Investigations into Scottish Power, Npower and E.on are continuing.
*
Still, SSE is "deeply regretful" of its prolonged and extensive naughtiness, so that makes it alright then.
Not so long ago, with the mis-selling of financial products by one of the top Brit high street banks that was fined approx. £10 million, I tried to find out how much money the bank made from its mis-selling activities in order to judge if the fine was a reasonable expression of punishment. The Financial Services watchdog that imposed the fine didn't know, so I asked the bank itself. They responded by saying it was private information. I continued trying elsewhere. It became a lovely circular and endless two-step.
So, my guess is that the fine is simply a tiny fraction of the profits SSE made from mis-selling. And as we know from all the pols throughout history, is the punishment doesn't fit the crime, it becomes an effective unstated approval to continue the profiteering.
As usual, the main people scammed are the poorest in society.
The shadow is a moral problem that challenges the whole ego-personality, for no one can become conscious of the shadow without considerable moral effort. To become conscious of it involves recognizing the dark aspects of the personality as present and real. This act is the essential condition for any kind of self-knowledge.
Carl Jung - Aion (1951). CW 9, Part II: P.14