Scottish Power over charging Direct Debit customers
Between 2015 and 2023 Scottish Power Energy Retail Ltd overcharged some of their customers. 1699 customers were affected. This overcharge started in 2015 and continued across 11 price cap periods to June 2023. A time when energy prices reached historically high levels. Ofgem has worked to resolve the issues.
Ofgem has agreed a redress package of £1.5 million.
On average customers paid £149 more than they should’ve done.
Direct debit customers were mistakenly charged more than the price cap which should have been only applied to those on the standard credit (on receipt of bill).
The company reported itself to Ofgem in the Summer of 2023.
- £250,000 will be used for refunds.
- £250,000 for goodwill gestures in recognition of the financial pressures households were already under. the additional strain and financial hardship caused by Scottish Power.
- £1 million will be paid to the Ofgem Voluntary Redress Fund which provides money to charities and community groups who help vulnerable people with Energy related support. Customers will receive £250. This payment should be automatic into your account.
Customers will receive £294 on average which will be paid automatically into their accounts so you do not need to do anything.
Dan Norton, Ofgem’s Deputy Director for Price Protection, said:
The last few years have been challenging enough for energy customers facing increasing cost of living pressures, without the additional hardship of being overcharged. The price cap is there to protect consumers, and we take seriously any breaches of the safeguards we have put in place.
Suppliers must be vigilant and act quickly to resolve billing errors that impact customers. We will continue to closely monitors all suppliers and will hold them to account if they do not meet the standards we set.”
Ofgem said that if the company had not self reported the fine would have been higher. A warning shot to companies to be honest!
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Help with complaining about energy
How to save money on and complain about, energy various posts to help with all aspects of energy
Help with paying energy bills
Ofgem provides help with links from its page Getting help if you can’t afford your energy bills. Its rules state that suppliers must work with you to help you if you are in financial difficulty.
This might include setting up a payment plan, payment breaks, more time to pay, access to hardship funds or providing details to the Priority Register. If you are vulnerable you should be on your supplier’s list.
There may also be access to hardship funds and grants from various other organisations. You may also be able to get 60 days’ space from creditors to focus on getting debt advice and setting up a debt solution.
You can also get debt advice from Citizens Advice, StepChange and National Debtline.
Go to Turn2Us who provide information and advice on what help is available including charities that will help you pay your bills.
In summary, if you are having problems talk to your energy supplier, they are obliged to help you! Keep everything in writing so you have the evidence should you need to take the matter further such as to the Energy Ombudsman.
Further help to complain about energy
20 Tips for effective complaining
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Purchase and download templates to gain redress swiftly.
