ScottishPower has today agreed a £2.4m consumer redress package with Ofgem, following the regulator’s ruling that ScottishPower failed to meet targets under the UK Government’s CESP scheme by the required deadline.

Neil Clitheroe, CEO Retail and Generation at ScottishPower, said:

“The design of the CESP programme was challenging, making it very difficult to find suitable partnerships and properties to target under the scheme.  Finding solutions to these challenges meant that the eventual cost to ScottishPower of delivering the CESP scheme was £64m, versus the original DECC impact assessment of £30m.

“By the end of 2012 we had managed to contract for 100% of the obligation but had only physically delivered 70% of our target.  The shortfall was delivered by the end of April 2013, and we then continued to deliver measures in excess of our obligation. When completed, our CESP scheme benefited approximately 20,000 families.

“Although we are disappointed with Ofgem’s enforcement decision, we fully co-operated with the investigation and agreed to settle the matter as quickly as possible.”

The £2.4m will be donated to The ScottishPower Energy People Trust, an independent charity that supports other registered charities who offer help to people whose lives are affected by fuel poverty.

To date The ScottishPower Energy People Trust has awarded over £12.1 million to 259 projects, helping over 1.6 million people in 1.3 million households through community projects designed to reduce fuel poverty.