SSE takes no action over M&S Energy loophole

Energy loophole: SSE/M&S partnership allows energy company to avoid an Ofgem directive
Energy loophole: SSE/M&S partnership allows energy company to avoid an Ofgem directive

SSE can continue exploiting an Ofgem loophole after opting not to follow in the footsteps of British Gas by offering all its customers the same cheapest tariff.

The energy giant SSE has a partnership with M&S that allows it to avoid an Ofgem directive that requires energy firms to write to customers to tell them the cheapest tariff available to them through their supplier.

A loophole means suppliers with a white label brand do not need to inform customers if they can get the cheapest deal through the parent company or the brand, even though the energy is provided by the same supplier.

British Gas was also able to exploit the same loophole due to its white label partnership with Sainsbury’s, but has revealed it will now offer all its customers the same cheapest tariff, after Marketing exposed the loophole.

British Gas told Marketing it would roll out the same cheapest tariff to all its customers last week in order to ensure they all get a "fair" deal.

An SSE spokesperson has defended its decision not to offer the same cheapest tariff across both its brands or inform customers if they can get the cheapest tariff on the SSE or M&S Energy brand.

The spokesperson said: "Current Ofgem regulations state that where cheapest tariff information is required in written communications, white label customers should be told about tariffs from the same brand and non-white label customers should be told about non-white label tariffs, and this approach reduces the risk of customer confusion.

"White labelling is a standard business practice across many industries, including energy, insurance and banking, which ultimately benefits consumers by allowing trusted brands to expand their offer across different sectors, helping to increase competition and consumer choice." 


Before commenting please read our rules for commenting on articles.

If you see a comment you find offensive, you can flag it as inappropriate. In the top right-hand corner of an individual comment, you will see 'flag as inappropriate'. Clicking this prompts us to review the comment. For further information see our rules for commenting on articles.

comments powered by Disqus
Brand Republic Jobs

subscribe now


Lynx tells men not to leave love to fate
HBO captures awkwardness of watching sex scenes with parents
Primark to open first US stores with Boston chosen as flagship location
Marketing spend on the up but a reality check is needed before celebrating
Top 10 ads of the week: Jackpotjoy and BT Broadband fend off Kevin Bacon
Lidl beats Tesco to 10m Facebook fans
Center Parcs ad banned for encouraging parents to take kids out of school
Coca-Cola, Cadbury and Amazon named top brands for targeting youth market
Leaked document shows Nokia to be rebranded as Microsoft Mobile
Nike lays-off hardware staff in move that casts doubt on future of FuelBand
Greenpeace says save the bees or humans will die
What brands need to know about changes to VAT and online downloads in 2015
Jimmy Savile victims urged to claim compensation in new ad campaign
UKIP launches biggest  ad campaign and stirs up 'racist' accusations
Apple boss Tim Cook provides voiceover on ad touting firm's renewed green commitments
John Lewis walks consumers through its history to celebrate 150 years of business
Waitrose boosts content strategy with 'Weekend Kitchen with Waitrose' C4 tie-up
Hottest virals: Cute puppies star in Pedigree ad, plus Idris Elba and Fruyo
Amnesty International burns candles to illuminate new hope
Toyota achieves the impossible by calming angry Roman drivers
Tom of Finland's 'homoerotic' drawings made into stamps
YouTube reveals user habits to appeal to 'older' marketers
Ex-M&S marketing chief Steven Sharp consulting at WPP
Wolff Olins reveals new CEO after Apple poaches Karl Heiselman
Glasgow offers £30,000 prize to best digital idea for 2014 Commonwealth Games
Google's revenues surge but shares drop as it grapples with transition to mobile
Facebook beats Twitter to most 'marketing friendly' social media site crown, says DMA
Fableists believe children like Finn should be outdoors enjoying life
Homebase, Baileys and Camelot join the line-up at Media360
MasterCard renews Rugby World Cup sponsorship to push cashless message