Scottish Gas to 'fine' late payers

Customers who fail to pay their power bills on time will be fined, it has emerged.

From March 1, Scottish Gas customers who do not pay up within 28 days of receiving a bill will be hit with a £5 charge.

The company said the move would help claw back some of the £21 million it loses each year chasing up late payments across the UK and is 100% cost reflective.

Vulnerable customers, such as low income families and pensioners, will be exempt from the late payment charge.

A Scottish Gas spokesman said: "The £5 charge reflects our costs in following up customers' debts and is an approach similar to that taken by many other companies, such as BT, though we won't be applying the charge to any vulnerable customers.

"We are informing customers who pay us by cash or cheque, offering advice on how to avoid the charge and the option to switch to a regular payment scheme."

Energy regulator Ofgem advised households to switch suppliers to avoid the £5 fine.

A spokesman said: "If people don't like the £5 charge then they should vote with their feet. There is sufficient variety out there for customers to find a power company without a late payment fee. There are plenty of companies competing for your business.

"Our studies have shown that if you are still with Scottish Gas for your gas and you local supplier for electricity you could save anywhere between £100 and £150 by moving supplier, so our advice would be to shop around."

Copyright Press Association 2007