SSE cautions against meddling in ‘intensely competitive’ energy retail market

Company “manifesto” also targets electric vehicle infrastructure and corporate tax transparency

Energy company SSE has published a “manifesto” setting out its view of the priorities for an incoming government after next month’s general election.

The five-point agenda includes a caution to avoid unintended consequences via intervention in the energy retail market, which SSE described as “intensely competitive”.

While the company acknowledged a “legitimate” desire from political parties to intervene in the delivery of an “essential service” to ensure “value and greater fairness” it also wrote: “SSE would caution that the energy retail market is currently intensely competitive and, whilst switching is not the only barometer of a dynamic market, switching levels compare favourably to comparable markets such as mobile phones or insurance.”

It insisted that “major investment” is being poured into the delivery of measures to improve services and transparency, including the smart meter rollout and the faster switching initiative.

Such measures “should in themselves bring demonstrable changes to customers’ experience and engagement in the market,” it said.

If the new government remains determined to intervene with energy price regulation, SSE said it must have “a clear objective with broad support”. This must be developed based on “careful consultation on both the principles and the detail and, if introduced, should be time-limited and subject to regular reviews to reflect market realities, such as wholesale costs and the charges of various social and environmental policies funded through energy bills.”

Without these four features, SSE said it would caution “against the unintended consequences of intervention and the impacts on switching, competition and the range of products and extent of value available to customers.”

In addition to sharing thoughts on the state of energy retail market, SSE’s manifesto set out four requirements for policy clarity with regards to: the low carbon transition, growth in the wind power sector, electric vehicle charging infrastructure and corporate tax transparency.

SSE described the latter – in particular tax avoidance by large firms – as a “principal public concern”.

SSE is the only utility company to have been awarded the “Fair Tax Mark” for three years in a row. It was also commended by the organisation behid the accreditation for being “one of the most transparent companies in the UK when it comes to tax”.

“Government should consider how to encourage and reward tax transparency for all businesses, including country-by-country reporting of businesses’ tax affairs,” the company insisted.