Scottish Power to pay £1.5m to overcharged customers

Scottish Power is to pay customers £1.5 million in refunds and compensation after it charged them above the price cap during the height of the energy crisis.

The energy firm charged 1,699 direct debit customers a higher rate between 2015 and 2023 – across 11 price cap periods – which should only have applied to those who pay by standard credit, or on receiving a bill. The average amount Scottish Power overcharged during this period was £149 per customer.

Ofgem said Scottish Power is paying a total of £250,000 in direct refunds to affected customers as well as another £250,000 in goodwill payments, equating to an average of £294 per customer.

All payments will be made automatically, and customers do not need to do anything.

Ofgem said Scottish Power reported itself to the regulator last summer, when it discovered that operational errors had led to the mistake.

Scottish Power has also agreed to pay £1 million to Ofgem’s Energy Industry Voluntary Redress Fund, which benefits charities and community projects that help vulnerable customers with energy-related support.

Dan Norton, Ofgem’s deputy director for price protection, said: “The last few years have been challenging enough for energy customers facing increasing cost-ofliving 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.”