Scottish Gas to fine late payers

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Customers who fail to pay their power bills on time will be fined under a penalty scheme from Scottish Gas.

Those who have not settled their account within 28 days of receiving it will incur a £5 charge.

The firm said the move would help claw back millions of pounds it loses each year chasing up late payments.

Vulnerable customers will be exempt, but energy regulator Ofgem advised households to switch suppliers to avoid the £5 fine.

Regular payments

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."

An Ofgem spokesman said that people who did not like the £5 charge should "vote with their feet".

He added: "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."