ScottishPower fined £8.5m

The Prime Minister's official spokesman said Ofgem has given "a very strong signal" that energy companies will not "get away with" bad practice after the it fined ScottishPower £8.5 million.

Asked if David Cameron was happy with the level of the fine, he replied:

ScottishPower has apologised unreservedly to customers affected by misselling by doorstep and telesales agents.

ScottishPower's chief executive of energy retail and generation, Neil Clitheroe, said he was "happy that this matter has now been concluded".

Mr Clitheroe said in a statement: "I am pleased that Ofgem has made it clear that they found no evidence of a strategy by ScottishPower to deliberately missell to customers.”

ScottishPower has set up a £1 million customer compensation fund after regulator Ofgem fined the firm over misselling.

Customers who believe they may have been missold to can either complete an online form here, or call the dedicated phone number on 0845 030 3048.

ScottishPower will deliver the remaining £7.5 million through payments to customers identified under the Warm Home Discount Scheme.

For more information on the Warm Home Discount Scheme, ScottishPower customers can call 0845 030 3041.

Energy regulator Ofgem said it found ScottishPower did not have in place "appropriate management arrangements" to adequately train and monitor their doorstep and telesales agents, resulted in customers being given "misleading information".

"ScottishPower has accepted these failings, which have now all been rectified," Ofgem said.

The regulator continued: "The size of the payment reflects the impact of the sales practices on consumers and it also recognises ScottishPower’s cooperative engagement with Ofgem to put right their processes.

"Our investigation found no evidence of a strategy by ScottishPower to deliberately missell to customers."

Energy firm ScottishPower has agreed to pay £8.5 million to customers after providing misleading information through doorstep and telesales agents, regulator Ofgem said.