Achi news desk-
Ofgem said that when weighing up the compensation package, it had “considered the additional stress and financial hardship” Scottish Power’s mistake may have caused to customers.
READ MORE: Ian McConnell: Big surprise development at CalMac
Although it described the error as a “serious matter, the regulator added that the compensation package would have been “significantly higher” if Scottish Power had not reported itself to the regulator.
The average amount overpaid during this period was £149 per customer, Ofgem noted.
He added: “As a result, Scottish Power has paid a total of £250,000 in direct refunds to affected customers, plus a further £250,000 in goodwill payments – which equates to an average of £294 per customer. All payments were made automatically, and customers don’t need to do anything.”
READ MORE: Ian McConnell: Scotland’s ferry cost overrun eclipsed by serious Tory blunder
Scottish Power has also agreed to pay £1 million to Ofgem’s Energy Industry Voluntary Wrongdoing Redress Fund, “which benefits charities and community projects that help vulnerable customers with energy-related support”, it said. the controller.
READ MORE: Ian McConnell: Are the SNP and Greens really performing worse than the Conservatives?
Dan Norton, Ofgem’s deputy director for price protection, said: “The last few years have been challenging enough for energy customers facing rising cost of living pressures, without the added hardship of being overcharged. The price cap is there to protect consumers, and we take any breach of the safeguards we’ve put in place very seriously.
“Suppliers must be vigilant and act quickly to resolve billing errors that affect customers. We will continue to monitor all suppliers closely and will hold them to account if they do not meet the standards we have set.”
Ofgem noted that Scottish Power reported itself to the regulator last summer, when it discovered that operational errors had led to the standard credit tariff being raised on direct debit customers.
The regulator added: “This overpayment initially started in 2015 and continued across 11 price capping periods until June 2023 – a period when energy prices reached historically high levels, prompting the government to step in and provide additional support. In deciding this compensation package, Ofgem took into account the additional stress and financial hardship that Scottish Power’s error may have caused to customers during this period.
“While the error is a serious matter, the regulator has taken into account that Scottish Power has self-reported the issue and has put steps in place to address the failings. If Scottish Power had not self-reported and resolved the issues in a timely manner, the rectification package sought would have been significantly higher.”
