Scottish Power set for heavy fine in mis-selling probe http://www.energy-broker.co.uk/scottish-power-set-for-heavy-fine-in-mis-selling-probe/
ScottishP ower, one of the ‘Big Six’ energy suppliers that dominate the market, is understood to be facing a substantial fine from Ofgem for mis-selling.It is one of the three energy giants being investigated by the regulator, which has already fined SSE formerly Scottish & Southern Energy £10.5 million for repeatedly misleading customers.The other two firms being investigated by Ofgem for alleged mis-selling are Eon and RWE npower. But Scottish Power is understood to be the most serious case and it is facing a potentially far higher fine than any that might be levied on its rivals.The group, a subsidiary of Spanish utility Iberdrola and led by chief executive Neil Clitheroe, supplies 5.5 million UK households.An announcement from Ofgem on the issue is expected within weeks. Neither Ofgem nor ScottishP ower was prepared to comment.Under current rules, any fine imposed by Ofgem would be paid direct to the Treasury. However, if Scottish Power reached an agreement on the issue with Ofgem, cash could be returned to customers.Last year, Ofgem struck a deal with EDF for it to pay £4.5 million to vulnerable customers instead of imposing a fine for infringing its rules.
ScottishP ower, one of the ‘Big Six’ energy suppliers that dominate the market, is understood to be facing a substantial fine from Ofgem for mis-selling.It is one of the three energy giants being investigated by the regulator, which has already fined SSE formerly Scottish & Southern Energy £10.5 million for repeatedly misleading customers.The other two firms being investigated by Ofgem for alleged mis-selling are Eon and RWE npower. But Scottish Power is understood to be the most serious case and it is facing a potentially far higher fine than any that might be levied on its rivals.The group, a subsidiary of Spanish utility Iberdrola and led by chief executive Neil Clitheroe, supplies 5.5 million UK households.An announcement from Ofgem on the issue is expected within weeks. Neither Ofgem nor ScottishP ower was prepared to comment.Under current rules, any fine imposed by Ofgem would be paid direct to the Treasury. However, if Scottish Power reached an agreement on the issue with Ofgem, cash could be returned to customers.Last year, Ofgem struck a deal with EDF for it to pay £4.5 million to vulnerable customers instead of imposing a fine for infringing its rules.
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