SSE has pledged to reduce the number of customers on the default standard variable tariffs (SVTs).
In a letter to Energy Secretary Greg Clark and Ofgem CEO Dermot Nolan, Chief Executive Alistair Phillips-Davies said the Big Six supplier will no longer automatically roll customers onto SVTs once they have come to the end of their fixed term contracts from the next financial year.
Instead, he has promised to move customers onto an equivalent or cheaper fixed-term tariff, which would fix prices for 12 months with no exit fees.
The supplier also aims to “proactively communicate” with all customers coming to the end of their fixed term tariffs to ensure they are aware of this change and prompt them to consider which energy tariff is most suitable to them.
The pledge comes after the government set out its draft legislation to cap energy prices and Mr Clark encouraged suppliers to unilaterally propose voluntary measures to ensure the market serves all customers.
Mr Phillips-Davies added: “SSE is committed to maintaining the direction of travel away from SVTs and wants to be part of the solution, not the problem, in the energy supply market. We anticipate that these changes, along with continued efforts to engage customers with proactive communications, will accelerate the reduction in the number of SSE customers on SVTs.”