1-10-03

Scottish Power’s charging by the back door cannot be justified – Barrett

John Barrett, Scottish Liberal Democrat MP for Edinburgh West, today slammed a decision by Scottish Power, to increase its gas charges but only for customers who do not pay by direct debit.

Many utility companies now charge customers who do not to pay by direct debit as an extra fee for the administration of their payments.  Last month, John Barrett welcomed the decision of Telewest Communications to scrap these charges for their long standing customers who had a good credit history.

However, in a letter to Scottish Power's customers James Paterson, the companies Marketing Director has warned there was to be an increase in gas charges.  However, he also stated that people could "avoid the impact of this price increase by choosing to pay monthly by direct debit."

Mr Barrett has now received a number of complaints from constituents who are angry at being landed with a discriminatory 6% increase in the price of their gas.

In a statement, Mr Barrett, said:

"Whilst I appreciate that companies like Scottish Power want to cut their costs by encouraging customers to make direct debit payments, this blackmail of customers to switch to DD is out of order.

"These charges which Scottish Power has introduced will in all likelihood hit their more vulnerable customers, particularly the elderly who may not have access to a bank account or perhaps rely on other people to handle their finances. 

"Other companies, like Telewest Communications have already shown they can do business without imposing such charges.  At a time when other companies are removing these fees, it is wrong for Scottish Power to introduce even more.  I will now be contacting the management of Scottish Power to make this case."

ENDS

Notes to Editors

View copy of the letter from Scottish Power.