Energy firm SSE attacks rivals over "predatory pricing"

SSE wants government support over its call for a pricing crackdown

SSE, one of the "big six" UK energy providers, is simplifying electricity and gas tariffs, while attacking "predatory pricing" by its rivals.

The company is withdrawing its cheapest tariff, which is only for those who deal with the company online.

It will now make all tariffs available to customers, whether they use online, phone or post to communicate.

But there will still be discounts for direct debit users, of 6% for each unit used, and online bills saving 1%.

Perth-based SSE, which changed its name from Scottish and Southern Energy on October 1, has also written to UK Energy Secretary Chris Huhne, supporting his call for a crackdown on "predatory pricing" by its competitors.

Chief executive Ian Marchant has been taking measures to respond to government, regulatory and public pressure over the way the big six energy firms deal with customers.

His latest initiative was lodged with the department of energy and climate change as regulator Ofgem announced a £2m fine for rival firm npower.

SSE also said it had boosted its own transparency by publishing, for the first time, the total number of customer complaints about the company between July and September.

SSE said it received 187 complaints out of a total of 2,261 made to the energy ombudsman, while complaints made by customers about SSE to Consumer Focus and Consumer Direct stood at 58 and 40 respectively.

Mr Marchant's letter to the UK government carried unusually strong criticism of SSE's rivals.

Rule 'breach'

It told Mr Huhne: "Your frustration at energy suppliers who appear to engage in predatory pricing is totally understandable.

"The large price differentials between (often short-term) online and offline deals are prevalent amongst other major energy suppliers and are only made possible by the higher prices paid by existing, loyal customers.

"At times the price difference offered by some major suppliers has been over £300.

The letter went on: "SSE shares your view that treating customers in this way is not acceptable and reaffirms its commitment to never engage in any form of predatory pricing. Our decision to remove online/offline price differentials emphasises the extent of our commitment to this vital principle".

Mr Marchant said that differential could not be justified on the grounds of cost alone and "would therefore appear to be in breach of Ofgem's rules".

He said SSE has urged Ofgem to investigate this, and called on Mr Huhne to bring forward a condition for licencing energy providers that would force all suppliers to equalise prices for customers using online, telephone and post.

SSE includes the Scottish Hydro and Southern Electric brands.