Richard Palmer, a pensioner, received a demand from ScottishPower for £8,413 in March, with the letter warning that a credit default would be registered if payment was not made immediately. Facing the prospect of a six-year mark on his credit file that could affect his ability to obtain services, Palmer used half his savings to pay the bill, though the amount represented approximately nine times his typical annual energy costs.
Upon investigation by his daughter Anne, it was discovered that ScottishPower had made a significant billing error stemming from an incorrect meter reading dating back to 2022. Additionally, Palmer had been incorrectly charged £433 twice in November. When Anne attempted to lodge a complaint, the company initially refused to engage with her as she was not the account holder, delaying resolution by approximately a month.
Following contact from a news organization, ScottishPower acknowledged the mistake and issued a refund of £9,000 to Palmer, which included the duplicate charges. The company also apologized and stated it had implemented enhanced verification procedures to prevent similar errors. Palmer’s account was credited with vulnerability markers. The utility subsequently offered a goodwill payment, initially proposing £500, which was rejected, before a revised offer of £1,000 was accepted.
Experts criticized the scale of the billing error. Simon Francis of the End Fuel Poverty Coalition characterized the case as “quite shocking” and noted that such errors should be caught by existing checks and balances designed to protect vulnerable customers. The incident coincided with news that the energy price cap in Great Britain would increase by 13% starting in July, raising average annual bills to £1,862 from £1,641 for the subsequent quarter.