Proactive Investors - Scottish Power has been handed a £1.5 million fine from energy regulator Ofgem after breaching the energy cap at the height of the energy crisis.
Approximately 1,700 direct debit customers were overcharged between 2015 and 2023 by an average amount of £149.
Scottish Power has agreed to pay a total of £250,000 in direct refunds to affected customers, plus another £250,000 in goodwill payments – equating to an average of £294 per customer.
It will also pay £1 million to Ofgem’s charitable Energy Industry Voluntary Redress Fund.
“We’re 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,” said Scottish Power’s chief executive of UK retail.
Scottish Power is owned by Spanish utility company Iberdrola (BME:IBE), the country’s second-largest company behind Zara owner Inditex (BME:ITX).
While the error is a serious matter, the regulator has taken into account that ScottishPower self-reported the issue and put in place steps to address the failings,” said ofgem.
“Had Scottish Power not self-reported and resolved the issues in a timely manner, the redress package sought would have been considerably higher.”