ScottishPower slapped with £750k fine for overcharging

The energy supplier was fined by Ofgem after it emerged that customers who refused to pay by direct debit were being overcharged

ScottishPower has been forced to pay £750k for overcharging non-direct debit customers

ScottishPower has been forced to pay £750k for overcharging non-direct debit customers

Although energy companies typically charge customers who do not pay by direct debit more, Ofgem found that the difference in price for ScottishPower customers who did and didn’t pay by direct debit was excessive and unjustifiable.

ScottishPower’s charging practices were found to be substantially different from the rest of the big six energy suppliers and as a result Ofgem has forced the gas and electricity provider to pay £750,000.

ScottishPower’s non-direct debit customers will not be reimbursed.

Ofgem: ‘We’ve held them to account’

Speaking on the fine, Senior Partner for Enforcement at Ofgem Sarah Harrison, said: “Suppliers need to clearly justify the different prices they set for different payment methods.

“In this instance, ScottishPower did not have a robust process in place when setting their prices to ensure that the difference between their tariffs complied with Ofgem’s rules. We’ve held them to account for this and they will now pay £750,000 to benefit Energy Best Deal.”

Ofgem added that ScottishPower had collaborated fully during the investigation and had since cut its charges for non-direct debit customers in half.

Money will go towards helping low income households

The £750,000 will be added to a fund aimed at helping low income households pay their energy bills. Back in October 2013, ScottishPower was fined £8.5m for misleading consumers via its doorstep and telesales practices.

A spokesperson for ScottishPower said: “We recognise that historically we did not have a robust process in place but we are pleased that Ofgem has concluded its investigation and made no finding that any specific impact on customers resulted from our failure to have these processes in place.

“We fixed this problem by December 2012 and all of these processes are now fully compliant.”

The payment follows an Ofgem enforced £12m fine issued to E.ON for mis-selling energy, last week. The latter represents the largest fine ever imposed by the energy regulator.

Read more

Rocketing energy bills = £6bn pay out for shareholders

New First Utility plan tops best buy table

Post tags:

Join the conversation

  • GeeCee

    Where has the money from the government’s stoppage of green tax and saved by the energy companies gone? Not to the consumer in the case of Scottish Power. It has gone straight into SP’s profits pocket. My fixed price contract allows for changes in pricing due to government actions(eg change in Vat, tax or even green levies). However this has not been applied by SP and I am now effectively paying more for the energy supply part of my contract sinc the overall price I pay has not changed. I have been in dispute with SP since last December over this and have had 7 communications with different personnel and they all say they will sort it out in 5 days and pass me on to someone else. If this was a high street retailer they would go bust inside a few weeks. SP are pathetic.