Scottish Power overcharging for different payment methods is “taking advantage of customers”

Ofgem has acted on Citizens Advice concerns that Scottish Power was overcharging customers for different payment methods.

Citizens Advice Chief Executive Gillian Guy said:

“Energy firms are taking advantage of their customers when they overcharge for different payment methods.  With fuel bills up a third since 2010 costs are already very high so people shouldn’t be paying more than they have to in order to have a warm home and the lights on.

“With trust in energy suppliers at rock bottom, companies need to be up front and clear about why prices between alternative payment methods differ and by how much.

“Ofgem is right to hold Scottish Power to account for not sticking to the rules and it is good that struggling consumers will benefit as a result of its action.  It has taken four years for this issue to be resolved so we hope this action, along with the £12 million E.ON is paying back to customers, is a sign that Ofgem is getting on with current enforcement cases and can find a quicker way to sort these issues out for consumers.”

Notes to editors:

  1. Consumer Futures referred Scottish Power to Ofgem for its price differential in 2010 when was a separate organisation, it is now part of Citizens Advice.

  2. This year the Citizens Advice service celebrates its 75th anniversary. We’ve planned a year of activity running from January to December 2014. Contact the press office to find out more.

  3. The Citizens Advice service comprises a network of local bureaux, all of which are independent charities, the Citizens Advice consumer service and national charity Citizens Advice. Together we help people resolve their money, legal and other problems by providing information and advice and by influencing policymakers. For more see the Citizens Advice website .

  4. The advice provided by the Citizens Advice service is free, independent, confidential, and impartial, and available to everyone regardless of race, gender, disability, sexual orientation, religion, age or nationality.

  5. To find your local bureau in England and Wales, visit www.citizensadvice.org.uk . You can also get advice online at www.adviceguide.org.uk

  6. You can get consumer advice from the Citizens Advice consumer service on 08454 04 05 06 or 08454 04 05 05 for Welsh language speakers

  7. Citizens Advice Bureaux in England and Wales advised 2.1 million clients on 6.6 million problems from April 2012 to March 2013. For full 2012/2013 service statistics see our quarterly publication Advice trends

  8. Citizens Advice service staff are supported by more than 22,000 trained volunteers, working at over 3,000 service outlets across England and Wales.