By Ed Ballard 
 

LONDON-- Energy supplier ScottishPower will face a sales suspension if it doesn't improve its customer service, U.K. regulators have warned.

Ofgem, the energy regulator, said Friday it has opened an investigation into the company, a division of Spain's Iberdrola S.A. (IBE.MC). It said ScottishPower has agreed to meet targets for speeding up its customer response times, reducing the number of late bills, and clearing a backlog of complaints.

If it misses the targets "its proactive sales activities will instantly be suspended," Ofgem said.

In March, Ofgem asked U.K.'s Competition and Markets Authority to investigate the energy sector amid heated criticism of rising domestic fuel bills.

"ScottishPower's customers are experiencing unacceptably long call-waiting times and a drastic drop in overall customer satisfaction," said Sarah Harrison, senior partner in charge of enforcement at Ofgem.

"The need for our intervention here is yet more evidence that the energy market is not working for consumers," she added.

Write to Ed Ballard at ed.ballard@wsj.com

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