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The company has held informal talks with a number of London-based shops, with a view to appointing a retained agency to the business.

In contrast to some of its biggest rivals, such as British Gas and E.ON, Scottish and Southern Energy has not previously used high-profile advertising campaigns, but it is understood that the company is keen to put a greater emphasis on this area.

In recent times, Scottish and Southern Energy has tended to use Scottish shops for its advertising, but it is now keen to work with a London agency for broader UK communications campaigns.

The energy company currently uses the Edinburgh-based agency Story UK to handle its digital and direct marketing work, and works with The Union on the advertising for its Scottish Hydro-Electric offering.

Feather Brooksbank handles media planning and buying. These relationships are unaffected by the move.

During its time working on the account, Story UK has created a number of award-winning DM campaigns, including the "free-bee" work that won gold in the consumer direct mail category at the 2008 DMA Awards.

News of the review comes amid a highly publicised price war between the major energy companies, which has seen British Gas, E.ON and Scottish and Southern Energy cut gas prices.