Scottish Power News Update: £8.5 million of Compensation Assigned

Scottish Power £8.5 million Fine

Scottish Power news update: An £8.5million fine has been handed down to Scottish Power after Ofgem found that their customers had been mis-sold services.

The utility supply company have been handed an £8.5 million fine that will go back to their customers after independent regulator found that the company had mis-sold to customers through their doorstep and phone selling systems. Scottish Power are not the only utility company to have found themselves in this situation, SSE were handed a fine earlier this year and Npower and E.on are currently undergoing investigations to see whether they are guilty of the same.

Neil Clitheroe of Scottish Power has acknowledged the shortcomings of the company and has apologised for both the mis-selling as well as not making the relevant changes when the new regulations for remote sales came in in 2009. The fine takes into account all sales that were conducted from 2009 through to 2012.

Despite the fine being priced to reflect the cooperation of Scottish Power – they have written to 336000 customers that may have been affected and may be in line for compensation – it has been charged in the first place because of Scottish Power’s failure to train staff correctly.

The utility company’s response was to bring an end to their doorstep sales in 2011 and to bring in an independent regulator for their telephone agents. By acknowledging these failings, Scottish Power have ensured that they have received as minimal a punishment as they could have hoped for.

Scottish Power News Update

Sarah Harrison, Ofgem’s senior partner, stated that this fine is a way of showing all companies what the implications are if the company breaches their contracted licence obligations. As previously stated though the cooperation of Scottish Power has been reflected in the size of the fine sent towards the company. Another factor has been the lack of evidence to suggest that Scottish Power intentionally laid out a structure to mis-sell to their customers.

With 140000 customers set to receive a share of £7.5 million allocated to compensation, there is a further million dedicated to those who are part of the government-run “warm home discount” scheme. This is to assist those who are at risk of fuel poverty and thanks to Ofgem’s investigation into Scottish Power are also likely to get around £50 compensation each.

Scottish Power customer service department can be contacted using the information provided on Customer Services Contact or you can read about all of their products and services on the Scottish Power website.

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