Scottish power, is being investigated by Ofgem for the third time, can you believe this? The question that must be asked is why are they being investigated for a third time by Ofgem over the same problem? All utility companies have or are being investigated over there pricing all the time, but nothing is ever done about it by the regulators, which in this case is Ofgem. Maybe it’s time for Ofgem along with other regulators to be investigated by a government committee, and asked why they aren’t coming down harder on these companies for there blatant abuse of there powers. Lets face it ever since these services were privatized the only people to make money out of them is the shareholders, when was the last time consumers had any benefit from the profits they make? For any company to put up prices 3 sometimes 4 times a year is in my opinion immoral, and watchdogs like Ofgem, should be looking after our, the consumers interest not the utility companies interest, which is why a change is needed especially in these tough economic times.
Ofgem has launched its third investigation into Scottish Power’s business practices over suspicions it has been misleading customers with claims to provide the cheapest online tariff.
The regulator said it would look into Scottish Power’s claims that its Direct Energy Saver could lead to savings of £459 per year.
Ofgem is already looking into allegations of mis-selling at Scottish Power. It has a third inquiry into the difference in prices for customers paying by standard credit and those paying by other methods.
Scottish Power announced this month that it would be increasing average gas tariffs by 19pc and electricity tariffs by 10pc by the beginning of August. This means the average dual-fuel customer will see their bill increase by £175 per year to just under £1,400.
At the same time, the utility claimed it had the cheapest online tariff in the market that could lead to hefty savings. Scottish Power said yesterday that all its calculations and claims are “accurate”.
It also emerged last week that Scottish Power has begun notifying a number of its online discount customers that their gas bills will rise by almost 60pc – triple the average increase in prices.
A number of customers are now facing much steeper increases than the average, especially those who have signed up for some Online Energy Saver tariffs. There are also huge discrepancies in regional prices, with customers in the East Midlands and East areas facing the biggest jumps.