Energy News

Scottish Hydro rapped over ‘cheapest deal’ internet ad

Wednesday, 31 March 2010

By Daniel Barnes- daniel@consumerchoices.co.uk

Energy companies are battling over who can say they are the cheapest in adverts.

Scottish Hydro has been forced to take down internet adverts claiming it was offering the cheapest gas and electricity bills.

The energy provider, part of Scottish and Southern Energy (SSE), had a series of internet and poster adverts claiming it was the “cheapest energy deal in town” that appeared last year.

However, a number of customers and rival British Gas complained over the claims.

British Gas complained the claim to be the cheapest energy deal was misleading as it included a £40 discount for signing up to the deal and was only available for dual fuel customers paying by direct debit.

SSE defended itself claiming the adverts made it clear terms and conditions applied.

The firm also hit out at energy price comparison sites for not including the £40 discount in price league tables as the Go Direct deal was only available directly from the Scottish Hydro website.

SSE claimed the Go Direct tariff was the cheapest for the duration of the campaign and the provider responded to any competitors' price changes by reducing their own prices, which were then backdated for the duration of the campaign and applied to all customers.

The Advertising Standards Authority ruled the claim to be the cheapest energy deal was not false, but ordered SSE to change the internet adverts to make the exceptions clearer along with the fact deals covers gas and electricity sold together.