ScottishPower could face fine

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Energy regulator Ofgem is believed to be gearing up to land ScottishPower with a hefty fine for mis-selling, possibly within weeks.

The watchdog is investigating the Glasgow-based utility, along with rivals E.ON and Npower, over energy sales practices. Last month it fined SSE £10.5 million for failings in its sales processes that saw customers given misleading information on its charges.

Fines levied by Ofgem are paid direct to the Treasury, but the regulator can ask for money to be paid to customers instead, as long as it can reach an agreement with the firm being penalised. For example, EDF last year agreed to pay £4.5m to help vulnerable people with their bills after acknowledging “shortcomings” in its sales processes.

Ofgem refused to comment on reports that any fine imposed on Scottish­Power could be much higher than that levied on Perth-based SSE.

A spokesman for ScottishPower said the firm “continues to work closely” with Ofgem in relation to the investigation, which began in 2010.