Energy firm Scottish Power has agreed to pay out £18m after the energy regulator found it failed to treat customers fairly.
The bulk of the money – £15m – will be paid out to vulnerable customers that were affected by customer service issues with the remainder going to charity.
Around 100,000 customers will receive the money in their accounts, with sums averaging at £50-£150. Ofgem said the way Scottish Power handled calls, resolved complaints and billed customers was inadequate. It said customer service issues had resulted in more than one million complaints between June 2013 and December 2015.
The main reason for this failing was due to the implementation of a new IT System that was not handled properly at the time.
The regulator also pointed to unacceptably long waiting times, failures to implement ombudsman rulings on time and more than 300,000 customers receiving late final bills.
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