Ofgem To Fine Scottish Power For Repeaded Misleading And Mis-Selling To Customers
By Leigh TeixeiraAngela Knight who is the chief executive of Energy UK a trade body, says that the utility companies need to admit their erroneous ways.
One of the Big Six companies Scottish Power appears to be facing a substantial fine from Energy Regulator, Ofgem for mis-selling.
Currently Ofgem is investigating three of the energy giants, they have already fined SSE £10.5 million, because they repeatedly mislead customers.
The other two energy giants being investigated are E.ON and REW NPower, for the same offence.
It is understood that Scottish Power situation is considered to be the most serious of cases and they are possibility going to be fined a substantial amount for this misdeed. It is suspected that their fine will be very much higher than their rivals.
Scottish Power supplies about 5.5 million homes in the UK, they are a subsidiary of the Spanish Utility Company Iberdrola.
It is expected that Ofgem will announce on this issue over the new few weeks, there was no comment from the Regulator or Scottish Power
Any fine imposed on a company under the current rules, should be paid into the Treasury directly, however if Scottish Power came to an agreement with Ofgem, then the utility could pay cash to their customers who were affected instead.
Last Year, when EDF was fined, and amount of £4.5 million in a deal that was agreed upon with Ofgem to pay this amount to their vulnerable customers instead of a fine.
Ofgem said when they fined SSE, that a similar agreement couldnot be agreed upon as the size and liability of the penalty was in dispute – right to the end – however, SSE denied this and said that they would have come to an agreement of £10.5 million settlement if it had it been offered to them.
Ms. Knight stated last week that the industry faces an issues of trust with regard to dealing with the public, she also said that companies that have made a mistake should come forward and admit their mistakes.
The Regulator has been investigating the energy companies for alleged mis-selling for some time and in some cases, it was understood, date back for some number of years. The investigation was undertaken with hundreds of thousands of consumers, who were mis-sold contracts over a period of 2009 to 2012.
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