Ofgem has today secured a £2.4 million consumer redress package from ScottishPower as it failed to meet environmental targets under the government’s CESP scheme by the required deadline.
Under the CESP scheme, energy suppliers were required to deliver fixed targets of energy saving measures to help lower carbon emissions and reduce bills for households in low income areas by 31 December 2012. ScottishPower failed to meet its targets on time, delivering 70% of its obligation by the deadline. This meant that several thousand households missed out on energy efficiency measures during the cold winter of 2012/13. The company made up the 30% shortfall by 30th April 2013.
Ofgem found that ScottishPower’s senior management did not take appropriate action to ensure it delivered energy efficiency measures on time. Although management were aware that the company could fail to meet its target at the end of 2011, budget increases for CESP schemes were made slowly. After failing to meet the deadline, ScottishPower continued to deliver energy efficiency measures to consumers.
The penalty would have been higher if ScottishPower had not continued to install energy efficiency measures following its missed deadline. The supplier fully mitigated the volume of its shortfall arising from non-compliance by April 2013 and over-delivered by 2%. ScottishPower agreed to settle the investigation with Ofgem enabling a quicker resolution to the matter. Without these measures and co-operation the level of penalty would have been higher.
The company will provide consumer redress measures by allocating £2.4m to the ScottishPower Energy People Trust which will benefit consumers similar to those for whom the CESP scheme was developed.
Sarah Harrison, Ofgem’s senior partner with responsibility for enforcement said: “ScottishPower clearly missed its target by the required deadline disadvantaging many households. Today’s redress package sends a clear message to the energy industry that late delivery of obligations is unacceptable” Source: Ofgem