90,000 Scottish Power customers are soon to receive a share of £8.5 million. This is due to the fact that the industry watchdog Ofgem has found the energy provider guilty of improper conduct when selling their product.
They found that between October 2009 and January 2012, door-to-door sales people and telephone sales agents gave people incorrect annual charges and false tariff comparisons with their current energy providers. It was presumably done in a bit to bring more customers to their company. Ofgem ruled that Scottish Power had not trained its staff properly. Therefore, it has been forced to pay £8.5 million in compensation.
Scottish Power is currently in the process of sending out letters to around 336,000 households that it believes may have been affected by the issue. It is estimating that around 50,000 people could have lost money due to their sales staff. Anyone who has been affected will be paid between £5 and £30 per fuel. The money left over from the pot will go to the Energy People Trust charity.
If you believe that you are one of the people affected by this, you may be receiving a letter in the mail. Once this has happened, you can contact Scottish Power online or via the telephone. This can also be done if you think you may have been unfairly sold a Scottish Power package and have not received information from the provider.
The MSE energy analyst Archna Luthra said:
“These were appalling tactics used by Scottish Power and quite rightly it’s been slammed by the regulator. If you believe you’re out of pocket due to its chicanery I would urge you to claim compensation. Do not fall for any suppliers’ sales tricks. The best way to check if a deal is worth it for you is to do a full market comparison, which looks at all providers, and factors in your usage and postcode.”
The chief executive of energy retail and generation at Scottish Power, Mr. Neil Clitheroe apologised for misleading people and claims that his company has resolved the issue.
Mr. Neil Clitheroe said:
“We accept Ofgem’s findings and we apologise unreservedly to those customers affected. This arose as a result of new regulations which were introduced in 2009. I am sorry to say that we didn’t implement these properly at that time. Since 2011 we have taken determined steps to resolve the problem. Doorstep selling was stopped and all telephone sales staff are properly trained and monitored.”