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| Version 1 | Version 2 |
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| Scottish Power ordered to pay £8.5m for misleading customers | Scottish Power ordered to pay £8.5m for misleading customers |
| (about 5 hours later) | |
| Scottish Power has been ordered to pay out £8.5m by the energy regulator after customers were misled by the company's doorstep and telesales agents. | Scottish Power has been ordered to pay out £8.5m by the energy regulator after customers were misled by the company's doorstep and telesales agents. |
| The energy provider apologised "unreservedly" after Ofgem found adequate processes were not in place to train and monitor staff, which resulted in inaccurate information on annual charges, consumption calculations and tariffs. | The energy provider apologised "unreservedly" after Ofgem found adequate processes were not in place to train and monitor staff, which resulted in inaccurate information on annual charges, consumption calculations and tariffs. |
| Ofgem senior partner Sarah Harrison said the fine sent "a clear signal to energy suppliers" and it was time for them to "rebuild consumer trust". | Ofgem senior partner Sarah Harrison said the fine sent "a clear signal to energy suppliers" and it was time for them to "rebuild consumer trust". |
| Scottish Power has put aside £1m to compensate customers who lost money because of the failings. The company said it would be writing to 336,000 customers potentially affected but that internal estimates suggest around 50,000 will be entitled to a payout. | Scottish Power has put aside £1m to compensate customers who lost money because of the failings. The company said it would be writing to 336,000 customers potentially affected but that internal estimates suggest around 50,000 will be entitled to a payout. |
| Scottish Power will pay out between £5 and £30 per service, which includes gas, electricity, or dual fuel provision. | Scottish Power will pay out between £5 and £30 per service, which includes gas, electricity, or dual fuel provision. |
| An additional £7.5m will be paid to more than 140,000 vulnerable customers who will receive payments of around £50 by December. | An additional £7.5m will be paid to more than 140,000 vulnerable customers who will receive payments of around £50 by December. |
| Ofgem found that marketing obligations were breached between October 2009 and January 2012, but found no evidence of a strategy by Scottish Power to deliberately mis-sell to customers. SSE was fined £10.5m in April for "prolonged and extensive" sales practice failures. | Ofgem found that marketing obligations were breached between October 2009 and January 2012, but found no evidence of a strategy by Scottish Power to deliberately mis-sell to customers. SSE was fined £10.5m in April for "prolonged and extensive" sales practice failures. |
| Neil Clitheroe, Scottish Power's energy retail and generation chief executive, said: "We accept Ofgem's findings and we apologise unreservedly to those customers affected. | Neil Clitheroe, Scottish Power's energy retail and generation chief executive, 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." | "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." |
| Ofgem said the size of the penalty reflected the impact on customers and Scottish Power's willingness to review and correct its processes. | Ofgem said the size of the penalty reflected the impact on customers and Scottish Power's willingness to review and correct its processes. |
| "Had this not been the case the company would have faced a higher penalty," it said. | "Had this not been the case the company would have faced a higher penalty," it said. |
| Scottish Power stopped doorstep selling in 2011, and introduced independent checks on the conduct of telephone agents in all new sales. | Scottish Power stopped doorstep selling in 2011, and introduced independent checks on the conduct of telephone agents in all new sales. |
| The company is one of the UK's Big Six energy providers, three of which have announced a sharp rise in prices over recent weeks, inciting anger from consumer groups and politicians. | The company is one of the UK's Big Six energy providers, three of which have announced a sharp rise in prices over recent weeks, inciting anger from consumer groups and politicians. |
| Scottish Power has yet to announce a rise in tariffs, despite the decision to do so by SSE, British Gas and, most recently, npower. | Scottish Power has yet to announce a rise in tariffs, despite the decision to do so by SSE, British Gas and, most recently, npower. |
| Scottish Power would not be drawn on whether it was poised to announce an increase. "It is constantly under review but we don't speculate on prices," he said. | Scottish Power would not be drawn on whether it was poised to announce an increase. "It is constantly under review but we don't speculate on prices," he said. |
| Ofgem said separately that tougher rules taking effect on Tuesday would ban energy companies from increasing prices on fixed-term tariffs. | Ofgem said separately that tougher rules taking effect on Tuesday would ban energy companies from increasing prices on fixed-term tariffs. |
| Companies will also be banned from automatically rolling householders on to another fixed term offer when their current one ends. | Companies will also be banned from automatically rolling householders on to another fixed term offer when their current one ends. |
| Andrew Wright, Ofgem's chief executive, said: "Ofgem is resetting the energy market in consumers' favour to make it simpler, clear and fairer. In an era of rising prices it is vital that competition works as effectively as possible. | Andrew Wright, Ofgem's chief executive, said: "Ofgem is resetting the energy market in consumers' favour to make it simpler, clear and fairer. In an era of rising prices it is vital that competition works as effectively as possible. |
| "Ofgem is going to make it easier for consumers to 'vote with their feet' and for new suppliers to enter the market and take on the Big Six." | "Ofgem is going to make it easier for consumers to 'vote with their feet' and for new suppliers to enter the market and take on the Big Six." |
| • Scottish Power has established a £1m compensation fund. If you think you might be eligible you can call 0800 0740362 or submit an online form at www.scottishpower.co.uk/salescompensation | |
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