ScottishPower

Scottish Power facing sales ban for poor customer service and Ofgem probe

Published: 08:32, November 14, 2014

Scottish Power Ltd. has been threatened with a sales ban unless it can fix some serious problems regarding customer service, the UK government regulator for the electricity and downstream natural gas markets Ofgem announced on Friday.

Ofgem (Office of Gas and Electricity Markets) says Scottish Power signed up on Friday to its targets to improve customer service within 3 months. Ofgem adds that it has launched a probe into how Scottish Power treats its customers.

According to Ofgem’s senior partner for enforcement, Sarah Harrison:

“Scottish Power’s customers are experiencing unacceptably long call waiting times and a drastic drop in overall customer satisfaction.”

The Glasgow-based company, which is subsidiary of the Spanish utility Iberdrola, will face a telesales and overall sales ban at the end of November if it cannot clear a huge backlog of Ombudsman-ruled customer complaints.

Scottish Power has been told to reduce the current 75,000 overdue bills to 30,000 by the end of this year, and improve waiting times “considerably” by the end of January 2015.

Sarah Harrison, Ofgem

Sarah Harrison says the energy market is not working for consumers.

According to Ofgem, one in every four customers who calls the supplier by phone eventually hangs up because he or she has been waiting too long to be attended to.

Regarding Scottish Power’s poor customer service record, Ms. Harrison said:

“In a properly functioning market we would expect companies to compete keenly on service. The need for our intervention here is yet more evidence that the energy market is not working for consumers. This further justifies our decision to refer the market to the Competition and Markets Authority.”

“The investigation we launched today is the third time we have used our new standards of conduct to make suppliers treat consumers fairly. This is a clear signal to suppliers to up their game and give consumers the service they are entitled to.”

Scottish Power said in a statement on Friday that it has invested £200 million on a new customer management system. All its customer accounts have been transferred onto this new system, which is starting to deliver some tangible benefits, such as longer call center opening hours and an online direct debit management service.

Neil Clitheroe, head of retail at Scottish Power, said in a letter to Ofgem:

“I would like to apologise unreservedly to any customer who has not received the level of service that they deserve from Scottish Power in recent months and provide my personal assurance that we will do what we can to correct every problem, pay appropriate compensation and ensure that no customer is disadvantaged.”

Christian Nordqvist Avatar

Other News

Europe’s housing squeeze is becoming a labor market problem

Sep 3, 2026

Vertiv agrees $1.45 billion deal to expand onsite power for AI data centers

Sep 2, 2026

How to Plan a First New York Trip Without Feeling Overwhelmed

Sep 2, 2026

Advanced-economy bond yields are lifting borrowing costs for developing countries

Sep 2, 2026

‘Buy Now, Pay Later’ may lift prices for shoppers who pay upfront, model finds

Sep 1, 2026

Fast delivery can shield nearby sellers from competition

Sep 1, 2026

World Bank says domestic reforms could unlock more trade within Africa

Sep 1, 2026

GoPro agrees Starman merger as action-camera maker looks to AI infrastructure

Sep 1, 2026

UK opens first challenges under £100 million AI procurement scheme

Aug 31, 2026

SLB to buy Kelvion in $4.1 billion deal as it expands into data center cooling

Aug 31, 2026

EU online sellers declared €38.8 billion in VAT through one-stop systems in 2025

Aug 31, 2026

IMF says stablecoins could cut payment costs but weaken monetary control

Aug 30, 2026

Middle East energy shock drives renewables push and fossil-fuel safeguards

Aug 30, 2026

Build-A-Bear cuts outlook as retail sales fall and wholesale growth slows

Aug 30, 2026

HP raises outlook as PC revenue climbs 18% despite lower unit volume

Aug 29, 2026

OECD growth edges up to 0.5% as G7 economies slow

Aug 29, 2026

G20 trade accelerates as imports and services strengthen in second quarter

Aug 29, 2026

Free electricity may help grids use excess wind and solar power

Aug 28, 2026

Gap raises profit outlook as namesake brand gains but Old Navy struggles

Aug 28, 2026

Why “90% remaining” can make a premium product look like better value

Aug 28, 2026