Achi news desk-
Ofgem agreed the package after ScottishPower admitted it had mistakenly charged 1,699 direct debit customers too much of a higher rate, which should have only applied to those paying by standard credit.
The energy supplier reported the technical error as soon as it was discovered last year.
ScottishPower has put in place additional controls and monitoring to reduce the risk of anything similar happening in the future.
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The agreed compensation package, which includes direct refunds as well as goodwill payments, means that affected customers have received an average of £294 each.
All refunds and goodwill payments have been made and there is no need for customers to take any action, Scottish Power said.
ScottishPower will also pay £1 million to the Energy Industry Voluntary Redress Fund, which benefits charities and community projects that help vulnerable customers with energy-related support.
Andrew Ward, CEO of ScottishPower’s Customer Business, said: “We’re sorry that a very small number of our customers have been affected by this error and faced an increased financial burden – particularly at a time when energy prices were reach an unprecedented peak. the government had to step in to provide support.
“Caring for our customers is at the heart of everything we do and our immediate notification to the regulator, swift corrective action and the compensation package agreed with Ofgem shows how seriously we take this matter and our a commitment to getting it right.”
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Dan Norton, Ofgem’s Deputy Director for Price Protection, added: “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.”
