SSE compensates customers £665,000 following termination of Ebico partnership

At the end of 2016, the not-for-profit gas and electricity provider terminated its partnership with SSE and in February 2017, the FTSE 100 firm withdrew its white label tariff with Ebico from the market.

However, suppliers are required to move customers onto another tariff within 49 days of one being withdrawn from the market and as SSE took almost six months to do so, it was in breach of its licence.

While some customers were switched to a cheaper tariff, they lost potential savings as a result of the delay, leading SSE to pay the £190,000 in compensation.

Other customers ended up paying more on the tariff, forcing SSE to make a "goodwill gesture" payment of £475,000 to those affected.

"Due to the steps SSE has taken in co-operating with Ofgem, contacting and compensating affected customers, Ofgem has not taken formal action against the supplier," said Ofgem, the UK's independent energy regulator.

As of 0850 BST, SSE shares had grown 0.15% to 1,350.50p.