ScottishPower to compensate customers for billing error

ScottishPower has reached an agreement with the energy regulator Ofgem to compensate a small number of customers who were mistakenly billed at a higher rate than they should have been. The error, which affected only 0.04% of ScottishPower’s total customer base between 2015 and 2023, resulted in customers paying an average of £149 more than they should have over an eight-year period.

Upon discovering the technical error last year, ScottishPower took immediate steps to correct the issue and has since implemented additional controls to prevent similar mistakes in the future. The compensation package, which includes direct refunds and goodwill payments, has seen affected customers receive an average of £294 each.

In addition to compensating affected customers, ScottishPower has also agreed to contribute £1 million to the Energy Industry Voluntary Redress Fund, which supports charities and community projects that assist vulnerable customers with energy-related support.

Andrew Ward, CEO of ScottishPower’s Customer Business, expressed regret over the mistake and emphasized the company’s commitment to customer care. He stated, “Looking after 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 demonstrate how seriously we take this matter and our dedication to making it right.”

All refunds and goodwill payments have been processed, and affected customers do not need to take any further action. This compensation package serves as a reminder of the importance of transparency and accountability in the energy sector.