The in-house auditing of selling practices at energy supplier SSE, formerly known as Scottish and Southern Energy, was found to be “inadequate” according to regulator Ofgem.
Ofgem fined SSE a record £10.5m for numerous breaches relating mainly to inadequate monitoring, auditing and execution of SSE's past sales activities of gas and electricity.
In addition to “failures at every stage of the sales process”, the people employed to audit doorstep sales received a commission on sales, giving them an incentive not to report bad behaviour.
The company stopped doorstep sales in 2011, but mis-selling continued in stores and over the phone. According to Ofgem, SSE management failures led to “prolonged and extensive” mis-selling, such as misleading statements, inaccurate and misleading information on SSE's charges, and misleading comparisons between SSE's and other suppliers.
SSE said in response to the Ofgem penalty...