Energy company to give customers back £294 each after overcharging

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.

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

“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.”

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