Scottish Power is to pay its customers £8.5m in compensation following an investigation by Ofgem.

The probe surrounded the company's doorstep and telephone selling.

The industry regulator published its results of investigation into a breach of marketing licencing conditions by ScottishPower, and the firm said it accepted the findings.

As a result, it is to pay £7.5m to the 140,000 customers it has on the government-led Warm Home Discount scheme, which is aimed at supporting customers who are likely to be at risk of fuel poverty. It is thought each will receive a payment of around £50.

-- Advertisement --

It has also established a £1m customer compensation fund for those who believe they have been mis-sold to.

Neil Clitheroe, ScottishPower's CEO of Energy Retail and Generation, said: "I am happy that this matter has now been concluded. We accept Ofgem's findings and we apologize 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. However, I am pleased that Ofgem has made it clear that they found no evidence of a strategy by ScottishPower to deliberately mis-sell to customers.

"Since 2011 we have taken determined steps to resolve the problem: doorstep selling was stopped; and all telephone sales staff are properly trained and monitored. Independent verification of our current sales process suggest that we are now doing a better job. Customers dealing with us should expect to be given clear, accurate information which they can evaluate easily, in the light of their individual needs."

ScottishPower has said it will be writing to all customers affected regarding compensation.

(JP/MH)