Scottish Power agrees to pay £750,000 following Ofgem investigation into payment diff

[Legal Beagles]

  Scottish Power did not have a robust process for ensuring the level of price difference by payment type complied with Ofgem rules Scottish Power to pay £750,000 to Energy Best Deal Since December 2012 Scottish Power has improved its processes to calculate price differences for payment methods Scottish Power has agreed to pay £750,000 […]

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[Amethyst]

Re: Scottish Power agrees to pay £750,000 following Ofgem investigation into payment

The Authority finds that Scottish Power failed to take sufficient steps at the time that it set the prices to ensure that the differentials between standard credit and direct debit prices and discounts were compliant with SLC 27.2A over the period 1 September 2009 to 2 December 2012.

In particular, Ofgem analysed the suppliers’ compliance with SLC 27.2A. Ofgem’s findings from that review highlighted10 that SP’s price differential between standard credit and direct debit payment methods was very high and substantially out of line with that of other market participants.

''In the absence of robust processes, there is a possibility that SP’s customers may have incurred increased costs. However, the Authority was unable to establish that SP’s customers incurred increased costs as a result of the breach.''


The Authority considers it appropriate to impose a penalty on Scottish Power. However, Scottish Power has agreed to pay £750,000 in payments to Energy Best Deal. The Authority considers that the payments offered by Scottish to aid consumers will be of greater benefit to energy customers than if a substantial penalty is imposed. Accordingly, the Authority proposes that a nominal penalty of £1 should be imposed.

6.1. The Authority hereby proposes to impose a financial penalty on SP of £1 which it considers to be reasonable in all the circumstances of the case. The penalty is a lower figure than would have been imposed if SP:
 had not been willing to engage with Ofgem during the settlement process;
 had SP not provided an admission of liability; and
 had not SP made the offer of payment of £750,000 to Energy Best Deal Extra.
6.2. Any written representations on the proposed penalty must be received by Merce Almuni at Ofgem (merce.almuni@ofgem.gov.uk or Ofgem, 9 Millbank, London, SW1P 3GE) by 5pm on 17 June 2014.




Main document

• Notice of intention to impose a financial penalty on Scottish Power 20 May 2014

[ncf355]

Re: Scottish Power agrees to pay £750,000 following Ofgem investigation into payment

What the chuff is Energy Best Deal?

[enaid]

Re: Scottish Power agrees to pay £750,000 following Ofgem investigation into payment

What the chuff is Energy Best Deal?

http://www.citizensadvice.org.uk/fsf...energybestdeal


https://www.ofgem.gov.uk/ofgem-publi...feb2013web.pdf

[ncf355]

Re: Scottish Power agrees to pay £750,000 following Ofgem investigation into payment

Aha!

Thanks Enaid