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ScottishPower fined £1.5m for overcharging customers

ScottishPower Energy Retail has agreed to a £1.5 million redress package for overcharging 1,699 direct debit customers between 2015 and 2023

ScottishPower Energy Retail has reached an agreement with Ofgem to compensate customers after admitting to overcharging during the energy crisis.

The company will pay £1.5 million, with £250,000 in direct refunds and another £250,000 in goodwill payments to affected customers.

Additionally, ScottishPower will contribute £1 million to Ofgem’s Energy Industry Voluntary Redress Fund, supporting charities and community projects aiding vulnerable customers.

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.”

Andrew Ward, Chief Executive Officer of ScottishPower’s Customer Business, said: “We are so sorry that a very small number of our customers were affected by this mistake and faced an increased financial burden – especially during a time when energy prices were reaching an unprecedented high and the government had to step in to provide support.”

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