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Finance

ScottishPower compensates customers for billing error

ScottishPower has reached an agreement with the energy regulator Ofgem to compensate customers affected by a billing error.

The error, which impacted nearly 0.04%) of the company’s customer base between 2015 and 2023, resulted in direct debit customers being charged at the higher rate intended for standard credit customers under the price cap.

The company promptly reported the technical mistake upon discovery last year and took immediate corrective actions.

On average, affected customers were overcharged £149 during the eight-year period.

In response to Ofgem’s announcement of ScottishPower’s £1.5 million compensation payment, Rocio Concha, Director of Policy and Advocacy at Which? said: “With many households still struggling to afford their energy bills and the price cap significantly higher than it was before the energy crisis, suppliers need to ensure that billing is accurate and that customers are easily able to get in touch with customer service if something goes wrong.

“While many consumers will rightly consider switching, ScottishPower must urgently make improvements to ensure all customers are getting the service and support they need and deserve.”

End Fuel Poverty Coalition coordinator Simon Francis commented: “The sooner we fix Britain’s broken energy system by boosting home insulation and bringing cheaper renewables on stream the better.”

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