ScottishPower to PAY £7.5m package to benefit vulnerable customers FOLLOWING AGREEMENT WITH THE REGULATOR


Ofgem today published the results of its investigation into a breach of marketing licencing conditions by ScottishPower. The company has co-operated fully with the regulator throughout its investigation and accepts its findings. As a result, it has established a £1m compensation fund for customers who lost money as a result of these failings. In addition, the company will provide an additional £7.5m for its Warm Home Discount scheme, to benefit vulnerable customers.

Neil Clitheroe, ScottishPower’s CEO of Energy Retail and Generation, said:

“I am happy that this matter has now been concluded. We accept Ofgem’s findings and we apologize unreservedly to those customers affected. This arose as a result of new regulations which were introduced in 2009. I am sorry to say that we didn’t implement these properly at that time. However, I am pleased that Ofgem has made it clear that they found no evidence of a strategy by ScottishPower to deliberately mis-sell to customers.”

“Since 2011 we have taken determined steps to resolve the problem: doorstep selling was stopped; and all telephone sales staff are properly trained and monitored. Independent verification of our current sales process suggest that we are now doing a better job. Customers dealing with us should expect to be given clear, accurate information which they can evaluate easily, in the light of their individual needs.”

ScottishPower will be writing to all customers affected regarding compensation.

Notes to Editors

  1. Independent verification of ScottishPower TeleSales (Which? Don’t get Caught Out: Buying Energy over the phone, March 2013)

  2. ScottishPower Energy Retail – Record Number of Customers
    During 2012 and for the first 6 months of 2013, ScottishPower Energy Retail has added 400,000 customers taking the Company’s customer numbers to a record 5.5million.

  3. ScottishPower Energy Retail – Improving Customer Service

    a. Highest Customer Satisfaction with complaints handling performance  – OFGEM’s study into complaint management (April 2012)
    b. 4 star rating in the industry complaints scorecard (Consumer Focus March 2012)
    c. 5 Stars for billing and account management – Which? (July 2012)
    d. Overall Satisfaction increased by 10% in 2012 – uSwitch
    e. Rated best energy supplier – EnergyLinx (January 2013)

  4. ScottishPower will now write to 336,000 households who may have been affected between October 2009 and January 2012.  The Company will invite customers to contact them with information that will help them to investigate each case individually.

Information about our sales compensation fund is available by click the button below or by calling 0800 074 0362

Media Information: Simon McMillan: 0141 614 4582 & Paul Ferguson: 0141 614 4535

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