Ofgem fine Scottish Power for unfair price differences
Tom Greatrex, MP for Rutherglen and Hamilton West and Scottish Labour's Shadow Energy Minister, commenting on Ofgem's decision to fine Scottish Power £750,000 for unfair price differences between customers paying by standard credit compared to direct debit, said:
"This decision highlights the fact that our energy market is not working for people in Scotland and across the UK. That is why Labour will reform the energy market to stop firms from overcharging again in the future, and why we will put a stop to unfair price rises by freezing energy bills until 2017, saving Scotland £500m.
"Energy companies must know that if they fail to treat their customers properly there will be a heavy price to pay, so we welcome today's decision. It's unfair, unjustifiable and against the rules for energy companies to cash in on their most loyal customers or to penalise customers for their payment methods. In other industries companies have all kinds of schemes to reward their most loyal customers, but in the energy market loyal customers pay most. It is difficult to explain the reasoning behind these price variations other than the fact that suppliers are charging what they think they can get away with."
20 May 2014