An investigation into energy company SSE’s prepayment meter (PPM) processes has been launched.
It follows concerns about the Big Six supplier’s approach to switching its customers to PPM tariffs, particularly those in potentially vulnerable situations, according to Ofgem.
The regulator will examine whether SSE breached the Standards of Conduct, which are aimed at ensuring suppliers treat customers fairly.
Ofgem said: “[The investigation] will examine whether the supplier breached licence conditions which require them to provide appropriate information and ensure consumers’ ability to pay when suggesting alternative payment methods.”
However it added the opening of the investigation does not imply Ofgem has made any findings about non-compliance.
A spokesperson from SSE said: “We are committed to treating all our customers fairly and will be co-operating fully with Ofgem’s investigation into this historic issue.”
Following a two-year energy investigation, the competition watchdog said a transitional price cap would be introduced for PPM customers, which it believes would help cut bills by around £300 million a year.