SSE takes hit as one Ofgem probe closes and another opens

Relief for SSE shareholders was short lived on Monday as the energy regulator closed one probe, but opened another into the company.

Ofgem said it will examine whether the FTSE 100 firm failed to provide accurate information about the cheapest tariffs that customers could switch to and make savings.

It is looking into messaging in annual statements sent to pre-payment customers.

SSE said it will co-operate fully with Ofgem “over the course of this investigation, which relates to an historic system issue that SSE identified, resolved and reported voluntarily”.

It marks a blow for investors as it was revealed on the same day another probe into the Big Six firm was closed.

Ofgem said it is no longer looking at SSE’s practices around switching some of its customers to pre-payment meters between 2014 and 2015.

Shares in SSE lost 5p to 1341p.

The energy giant is also expected to keep regulators busy with its deal to merge its retail energy businesses with rival Npower, which will have 11.5 million customers.

Elsewhere on Monday, British Gas parent Centrica said it plans to abolish its most common form of tariff, the standard variable tariff, before Government intervention in the market takes effect.