SCOTTISHPOWER has been banned from proactive sales for 12 days after failing to meet customer service targets.
The Glasgow-headquartered firm signed up to new Ofgem targets in November after the regulator identified problems with customers experiencing long call waiting times and late bills.
The company managed to address those concerns within the three-month time limit set by Ofgem, but failed to resolve a third issue relating to the implementation of decisions by the industry ombudsman.
Sarah Harrison, Ofgem’s senior partner for enforcement, said: “A sales ban illustrates the difficulties ScottishPower is having delivering the levels of service customers deserve.
“While Ofgem’s targets have driven significant improvements on Scottish Power’s performance, we remain very concerned about how customers are being treated.”
The firm has now been ordered to remove its backlog for acting on ombudsman decisions for individual complaints by the end of November. Ofgem said it had been told the target was met in December and this was confirmed by the ombudsman.
But in January the regulator said it “uncovered new evidence that showed the company had not fully met its November target”.
As a result, the firm has accepted a 12-day ban on proactive sales.
More than 500 sales advisers will now spend the period through to March 15 “providing support” to ScottishPower’s customer service teams across the UK.
The lapses came as the business struggled to integrate a new £200 million IT system.
Where the company has been unable to resolve an ombudsman decision fully, it has been providing a free service and writing-off past debt.
Ofgem said: “ScottishPower will continue to honour this commitment until the underlying root cause affecting the account is fixed.”
As well as its ongoing investigation the regulator is also now demanding the firm undertake an independent audit of its progress on improving customer service.
It said it would keep the need for any further action under review.
“Scottish Power is committed to delivering the best service possible and treating our customers fairly,” retail and generation chief executive Neil Clitheroe said.
“We have a long track record of delivering high standards of service to our customers.
“The process of moving to our new system has been challenging and has resulted in service problems for some of our customers.
“We are determined to put this right.
“We continue to correct problems, pay appropriate compensation and ensure no customer is left financially disadvantaged.”