The energy supplier admitted to failing to comply with Standard Licence Condition 5 (SLC) which covers the requirement on licensees to provide information requested by Ofgem when and in the form requested. This condition is important for the regulator to enable it to carry out its regulatory duties.
SSE Energy Services failed to provide accurate and timely submissions of the Tariff and Customer Account Request for Information (RFI) that is sent to all domestic energy suppliers every six months. Failing to comply can result in a supplier being hit with a Final Order or financial penalty.
“To perform our regulatory functions effectively, it is essential that licensees provide us with timely, complete and accurate information in response to our RFIs. Otherwise, there is a legitimate risk of consumer harm from Ofgem not being able to identify potentially non-compliant activity.
As such, we consider non-compliance with SLC 5 to be a serious matter. This includes instances where requested information is submitted late without prior agreement, contains incomplete or inaccurate information, and where responses are not provided in specified formats,” said Ofgem.
Also read: How to Start An Energy Supply Company
In this case SSE Energy Services owned up to its error and proactively worked with Ofgem to resolve the issue and introduce appropriate mitigations to avoid a similar scenario occurring again in the future. It agreed to pay £20,000 to the Energy Industry Voluntary Redress Fund.
“Where licensees fall short of our expectations in this area, we are now prepared to take escalated action where appropriate, including where we see evidence of a pattern of poor responses to our requests.
Ofgem has decided not to take formal enforcement action on this occasion, considering that SSE Energy Services has since provided the requested information in the required format and has put in place measures to ensure these or similar issues will not re-occur in future,” said Ofgem.
Other energy suppliers that discover they have made errors or failed to comply with licencing conditions should always admit their mistakes and work with the regulator to ensure those errors are not made again in order to avoid punishments. A payment to the redress fund goes a long way too.
Also read: Competition and Markets Authority dismisses SSE appeal against Ofgem
In separate news, SSE issued a warning of a £180 million blow to its annual profits as its year to date renewables output fell by 9% as result of reduced wind generation and a fall in hydro energy generation.
The very cold winter resulted in wind turbine generation falling sharply in the first two months of the year resulting in the impact to the companies’ profits.
“It has been a uniquely challenging year for us all, but, thanks to strong operational performance and delivery against our net-zero strategy throughout 2020/21, we are on course to meet our financial objectives for the year,” SSE finance director, Gregor Alexander, said.
Also read: A Brief History Of Energy – Wind Power
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