Auditors blamed in SSE mis-selling scam

Kashflow logo
Share this content

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...

Please Login or Register to read the full article

The full article is available to registered members only. To read the rest of this article you’ll need to login or register. Registration is FREE and allows you to view all content, ask questions, comment and much more.

About Robert Lovell

Business and finance journalist


    Please login or register to join the discussion.

    05th Apr 2013 15:31



    The mis-selling at SSE, the biased position of their internal auditors, their management "apology" all hark back to the old adage "Tell me how you will measure (reward) me - and I'll tell you how I'll behave!"

    Huge bank bonuses appear to be in the same category.........

    These are the idle thoughts of a retired accountant.


    Thanks (0)