Scottish Power to pay customers £8.5m - Gas and electricity - News - Moneyfacts


Scottish Power to pay customers £8.5m

Scottish Power to pay customers £8.5m

Category: Gas and electricity

Updated: 22/10/2013
First Published: 22/10/2013

This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.

Scottish Power has been ordered to pay its customers a total of £8.5 million in penalties, after an Ofgem investigation into its doorstep and telephone selling practices found them to be "misleading".

Ofgem found that Scottish Power failed to adequately train and monitor staff which led to customers being misled during sales approaches, with around 140,000 customers on the "warm home discount" scheme being due redress.

The regulator accepts that there was no strategy to deliberately mis-sell to consumers, but has warned other suppliers not to follow suit: "Today's announcement is a clear signal to energy suppliers of the consequences of breaching licence obligations," said Sarah Harrison, Ofgem's senior partner in charge of enforcement.

Scottish Power will pay £7.5 million to the customers signed up to the scheme, estimating that they'll receive about £50 each, and has also set up a £1 million customer compensation fund for those who feel they've been mis-sold to.

The energy giant has also apologised for the errors, which were made between 2009 and 2012, and has since stopped its doorstep selling policy and has implemented routine checks on the conduct of its telephone agents. It's due to write to the 336,000 people who could be in-line for compensation.

Scottish Power has responded to the news:
"We accept Ofgem's findings and we apologize unreservedly to those customers affected. This arose as a result of new regulations which were introduced in 2009. I am sorry to say that we didn't implement these properly at that time … Since 2011 we have taken determined steps to resolve the problem," they said.

What Next?

Compare energy tariffs to make an informed decision

Switch and save up to £320 today

Disclaimer: Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.

Related Articles

British Gas freezes standard energy tariffs

British Gas has announced that it’s freezing its standard gas and electricity tariffs for the winter, ensuring that customers needn’t worry about price rises in the chilly months ahead. But is that enough to ensure households aren’t paying too much?

Living in a new home could cut fuel bills by half

Older homes will always be slightly more expensive to heat, with less insulation and sneaky draughts making these character-filled homes harder to heat efficiently. But did you know just how much more this could cost you? It could be double…

Standard energy tariffs are “fundamentally unfair”

We all know how expensive energy bills can be, particularly at this time of year when we’re all turning the thermostat up a notch. But what if you’re paying even more than you should be? If you’re on a standard tariff, that’s a very real possibility.