SSE reduces number of tariffs

SSE reduces number of tariffs

The company will now offer four tariff options: two fixed-rate and two variable, with only 15 payment methods in total - down from 68.

Calling the energy market ‘too complex’, SSE said it was committed to ‘end the complexity’ that surrounds tariffs.

“It has been suggested that forcing customers onto a single type of product will deliver a simpler approach to supplying energy to UK customers,” the supplier said in a statement.

“But this kind of simplicity can actually be detrimental to customers.

“Some suppliers have already chosen to only offer one product, and in doing so excluded millions of customers who wish to have a choice of payment method or don’t want to buy their product online.”

Ann Robinson, Director of Consumer Policy at uSwitch, agreed that the move will give customers a ‘far greater clarity’.

“Yet again SSE is setting the pace for the rest of the industry, this time unveiling its plans to simplify its products and prices while Ofgem is still consulting on its own proposals.  

“The three key changes that SSE has announced are: a new standing charge, a single unit price and a method for SSE customers to compare its tariffs, giving customers far greater clarity.

“But while this simpler approach will allow SSE’s customers to compare prices and get the best deal from this supplier, the only way to truly know that you are getting the best deal is to compare prices across all suppliers.”

Ofgem reforms 

The move comes following the end of energy regulator Ofgem’s consultation on its Retail Market Review (RMR). 

The RMR is an investigation into the energy market that aims to make billing and tariffs clearer, as well as making it easier for new suppliers to enter the market. 

“This is the direction that Ofgem wants the market to move in so it will be really interesting to see how SSE’s customers react and whether it does give the market the boost that Ofgem is hoping for.”

“A single unit price will allow customers to compare prices across its four core products simply and easily, allowing customers to choose the additional benefits they want as a ‘bolt on’ rather than trying to wrap it into the unit price preserves this clarity, while allowing customers to continue to benefit from the ‘bells and whistles’ that they like."