ScottishPower customers in line for compensation after £18m Ofgem fine

About 100,000 ScottishPower customers are in line for £150 compensation payments after the energy supplier was fined £18m by regulator Ofgem for poor service.

Ofgem said it had levied the penalty – the third biggest it has ever imposed on an energy company – because ScottishPower had failed to treat customers fairly due to problems with call handling, complaints resolution and billing

Up to £15m of the penalty is to be paid to vulnerable ScottishPower customers that were affected by the poor service, with the remainder going to charity.

It is understood that about 100,000 customers could be in line for the compensation payments, worth up to £150 each.

Ofgem said ScottishPower’s customer service had now improved significantly and that the company had already paid out £30m in compensation to affected customers.

Dermot Nolan, Ofgem chief executive said: “Scottish Power let its customers down during the implementation of a new IT system. When things went wrong, it didn’t act quickly enough to fix them. This created frustration and worry for many customers, who also wasted a lot of time trying to contact the supplier by phone.

“The £18m payment sends a strong message to all energy companies about the importance of treating consumers well at all times, including while new systems are put in place.”

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