Scottish Power ordered to pay £294 into customers' accounts for mistake

Energy firm Scottish Power is sending £294 directly into customers' accounts after admitting to an error in billing during the height of the energy crisis

It comes after Ofgem found that Scottish Power overcharged customers an average of £149 during the peak of the energy crisis due to a billing error for those on a certain payment method and has now been ordered to repay the money to customers with more on top.The mistake was that between 2015 and 2023, Ofgem mistakenly overcharged 1,699 Direct Debit customers a higher rate, which should only be payable by those who pay by standard credit .

Ofgem said in its announcement: "As a result, ScottishPower has paid 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. All payments were made automatically, and customers do not need to do anything. 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.

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Hundreds of households to get £294 back on energy bills1,699 direct debit customers are owed money
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Energy company to give customers back £294 each after overchargingOfgem says the money will be a refund and compensation
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People with ScottishPower paid back £294 after Direct Debit energy bill errorA small number of people were charged at the higher rate paid by standard credit customers.
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