ScottishPower announces customer compensation package after billing error - are you owed money?

ScottishPower has paid out £1.5m after some customers were mistakenly overcharged at a higher rate for their energy bills.

Energy regulator Ofgem said that 1,699 direct debit customers were charged above the price cap between 2015 and 2023. Normally customers who pay by standard credit would only pay at the higher rate.

Do I need to claim money back from Scottish Power?

The average amount overcharged per customer amounted to £149. ScottishPower has now repaid the amounts into customer’s accounts, as well as making goodwill payments. For those impacted, the total amount repaid is on average £294, with ScottishPower paying out £250,000 in refunds and an additional £250,000 in goodwill payments.

The company has already said that all payments due to go back to customers have already been made automatically. This means that there is nothing that customers need to do to receive their payment, with those affected already being paid out.

Andrew Ward, CEO of ScottishPower’s customer business, said: “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. Looking after our customers is at the heart of everything we do and our immediate notification to the regulator, swift corrective action and the compensation package agreed with Ofgem show both how seriously we take this matter and our commitment to making it right.”

Dan Norton, Ofgem’s deputy director for price protection, said: “The last few years have been challenging enough for energy customers facing increasing cost of living pressures, without the additional hardship of being overcharged. The price cap is there to protect consumers, and we take seriously any breaches of the safeguards we have put in place. 

“Suppliers must be vigilant and act quickly to resolve billing errors that impact customers. We will continue to closely monitors all suppliers and will hold them to account if they do not meet the standards we set.”

ScottishPower also agreed to pay £1m to Ofgem’s Energy Industry Voluntary Redress Fund. This helps to fund community projects and charities that help vulnerable energy customer.