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ScottishPower to compensate customers overcharged on direct debits

British energy regulator Ofgem has slapped ScottishPower Energy Retail with a £1.5 million fine for mistakenly charging some direct debit customers a higher rate between 2015 and 2023. The error impacted over 1,600 customers who …

British energy regulator Ofgem has slapped ScottishPower Energy Retail with a £1.5 million fine for mistakenly charging some direct debit customers a higher rate between 2015 and 2023.

The error impacted over 1,600 customers who were unknowingly placed on the standard credit tariff, resulting in an average overcharge of £149 each. These customers should have been on a lower payment plan for those paying on receipt of bills.

Despite already issuing £500,000 in refunds and goodwill payments to affected customers (averaging £294 each), ScottishPower will be required to compensate them further. Additionally, the company must contribute £1 million to Ofgem’s fund dedicated to supporting vulnerable energy consumers and related charities.

The issue came to light last summer when ScottishPower self-reported the billing errors to Ofgem. Their investigation revealed operational mistakes led to the direct debit customers being charged incorrectly.


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