Energy regulator Ofgem has imposed an £18 million fine on Scottish Power for failing to treat its customers fairly over a sustained period. The penalty, one of the largest ever handed to a big six energy provider, follows more than one million customer complaints between June 2013 and December 2015.
Ofgem chief executive Dermot Nolan said Scottish Power's treatment of gas and electricity customers was 'discernibly worse' than its peers. He criticised the company for poor call handling, complaint resolution and billing, with many customers facing long waits and delayed final bills.
Scottish Power blamed the failings on a new IT system and apologised 'unreservedly' to affected customers. However, Nolan dismissed the excuse, stating: 'I don't care how they messed up, it's their requirement to get the IT right.' He encouraged dissatisfied consumers to switch suppliers.
Up to £15 million of the fine will be paid to vulnerable Scottish Power customers who suffered due to the company's failings, with the remainder donated to charity. Tom Lyon of uSwitch.com said the penalty sent a warning to the energy industry that fair treatment of consumers is essential.
Scottish Power's chief executive Neil Clitheroe assured that no customer would be left out of pocket and that service has improved with the new IT system. Energy ombudsman Lewis Shand Smith acknowledged progress but noted there is still work to be done.
