A 76-year-old man, Richard Palmer, was sent an energy bill for over £8,400 by ScottishPower, causing him significant distress. He paid the full amount immediately, using half of his savings, fearing damage to his credit history. The bill was nine times his usual annual payment.
Billing Error and Customer Distress
The bill, demanding payment of £8,413, threatened a credit default if not paid. This marker would remain for six years, potentially affecting his ability to get mobile phone or satellite TV contracts. His daughter, Anne, described the letter as causing 'significant distress' and said her father felt he had no choice but to pay immediately.
Anne noted that her father is elderly, vulnerable, and easily panicked by official-looking correspondence. In December, ScottishPower had told him his annual bills would be about £922 for his small two-bedroom bungalow with solar panels. She also discovered he had been charged £433 twice in November.
ScottishPower's Response
ScottishPower admitted the mistake resulted from an incorrect meter reading from 2022. The company has refunded £9,000 to Palmer, including the double payment, and apologized. It has introduced enhanced checks to prevent similar issues. Palmer's account is now £61 in credit and marked as vulnerable.
A ScottishPower spokesperson said: 'We're very sorry for the billing issues experienced and the difficulties in getting these resolved, which fell far below our usual standards. We have fully corrected his account and meter readings and refunded a total of £9,000 to him. We're also discussing a goodwill payment with his daughter.'
Anne rejected an initial goodwill offer of £500 but accepted a subsequent offer of £1,000.
Industry Context and Expert Comments
Simon Francis of the End Fuel Poverty Coalition called the case 'quite shocking' due to its size. He criticized ScottishPower for lacking checks and balances to protect vulnerable customers. He questioned why a large payment from an elderly pensioner was not flagged.
ScottishPower was ranked the worst energy supplier for customer service by Which? earlier this year.
The case emerged as the energy price cap in Great Britain is set to rise by 13% from July, increasing the average annual bill to £1,862 from £1,641.
Advice from Martin Lewis
Martin Lewis, founder of MoneySavingExpert.com, said the price cap rise is 'voluntary – it can and should be avoided' for those on standard tariffs. He recommends fixing deals cheaper than the current cap to save immediately and benefit from the cap increase.
Lewis advises consumers to do a whole-of-market comparison to find the cheapest tariff based on usage and location.
