£200,000 fine for energy companies

ENERGY providers Scottish Power and npower have each been slapped with a fine of £200,000 for preventing customers from changing to a different supplier.

The penalties were announced by the energy regulator Ofgem, after it found 9,000 people had their requests to move to a different gas or energy supplier blocked by the two – in breach of the terms and conditions of their contracts.

It follows a fine of £200,000 levied on British Gas earlier this year, after it was also found guilty of preventing customers from transferring to another supplier.

Industry watchdog Energywatch said it welcomed the decision to fine the two companies. Allan Asher, chief executive said: 'In April 2003 Ofgem said it would not tolerate such behaviour and this decision is a sign that ofgem is committed to developing competition.

'It is vital people are encouraged to switch energy supplier to save money. If energy companies are going to obstruct this process then they are harming the competitive market and creating significant disadvantage for consumers.'

Energywatch is also calling for npower and Scottish Power to make an ex-gratia payment of £50 to customers who had requests to transfer to another supplier blocked.

'Scottish Power and npower have admitted they are in the wrong – they should pay up now,' said Asher.