ScottishPower hit by £8.5m penalty is being forced to pay its customers £8.5m in compensation after being found in breach of marketing rules in an Ofgem probe which looked into its doorstep and telephone selling practices.
Ofgem ruled that customers were misled during a three year period – between 2009 and 2012 – due to the firm’s failure to train and monitor staff.
About £1m will go to customers who were misled, while £7.5m will go to the 140,000 customers ScottishPower has on the government-led “warm home discount scheme”, who are likely to be at risk of fuel poverty. They will receive about £50 each.
Ofgem’s senior partner in charge of enforcement Sarah Harrison said:”Today’s announcement is a clear signal to energy suppliers of the consequences of breaching licence obligations.”
ScottishPower said the issues had now all been rectified, although like other energy companies it no longer sells energy door-to-door. It has put in place independent checks on the conduct of its telemarketing agents.
In April, Ofgem handed down a record £10.5m fine to Scottish & Southern Electric (SSE) after a period of “prolonged and extensive” misselling through telephone, in-store and doorstep sales.

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