REG - OFGEM - Scottish Power to pay £1.5m for overcharging

Iberdrola SAAnnouncement

16/04/2024 08:15

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RNS Number : 0866K  OFGEM  16 April 2024

Scottish Power to pay £1.5m for overcharging customers

 

Today, (Tuesday 16 April, 2024) Ofgem is announcing that Scottish Power Energy
Retail Ltd will pay £1.5 million in refunds and compensation for charging
customers above the price cap during the height of the energy crisis.

Ofgem agreed the redress package after the supplier confirmed that between
2015 and 2023, it mistakenly overcharged 1,699 direct debit customers a higher
rate, which should only apply to those who pay by standard credit (on receipt
of bill).

As a result, Scottish Power has paid a total of £250,000 in direct refunds to
affected customers, plus another £250,000 in goodwill payments - equating to
an average of £294 per customer.

Scottish Power has also agreed to pay £1 million to Ofgem's Energy Industry
Voluntary Redress Fund, which benefits charities and community projects that
help vulnerable customers with energy-related support.

This overcharge initially began in 2015 and continued across 11 price cap
periods to June 2023 - a period when energy prices reached historically high
levels, prompting the government to step in and provide additional support.

While the error is a serious matter, the regulator has taken into account that
Scottish Power self-reported the issue and put in place steps to address the
failings. Had Scottish Power not self-reported and resolved the issues in a
timely manner, the redress package sought would have been considerably higher.

 

 

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