Ofgem has warned Scottish Power that it could face a sales ban unless it improves customer service.
The company has to improve its customer service in the next three months, if it doesn’t, Ofgem will ban it from all proactive sales activities.
Ofgem wants the company to improve on the following 3 key areas: call waiting times; late bills; and Ombudsman complaints.
The company must: answer all customer queries promptly; decrease the number of overdue bills from 75,000 to 30,000 by the end of December; and resolve every single outstanding Ombudsman complaint.
An investigation has also been launched into the way Scottish Power treats its customers added Ofgem.
Scottish Power has had the highest percentage of billing errors among the large energy suppliers according to Uswitch.com.
“Ofgem’s action today will drive immediate improvements for Scottish Power customers.’’ Said Ofgem senior partner in charge of enforcement, Sarah Harrison
“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.”
“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.” she added.
Neil Clitheroe, Scottish Power’s chief executive apologised “unreservedly” to his company’s customers and also provided “personal assurance that we will do what we can to correct every problem”
Scottish Power has employed an additional 250 members of staff deal with the problems, he added.
Npower had been warned by Ofgem in June to reduce its customer complaints or, until problems were not resolved, to stop selling contracts on the phone.
Npower met the first set of targets was permitted to continue with its telephone sales procedures in September.
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