When my fil died i was on the way to the hosp in a cab, the guy also mucked me about with sat nav ringing up friends for directions etc. when i was sitting in the back pleading him to just aim for the town then find a and e signs.
I got a call on the journey saying he had died, which really upset me as i knew it was important to dh that dd who was about 7 months was there as fil had wanted to see her. At this point i told the driver what had happened, he already knew i was in a rush as someone was ill.
I cried a little bit in the back, the bloke charged me over £25 which i later found out was nearly double the charge. I paid at the time without question as i was upset, later i did wonder if he actually was a taxi driver, or if he had 'borrowed' it from a friend and family member to make cash or something. I wish i had thought of reporting him to council, i did ring minicab firm, talk to the controller explained the story and he was very upset about it and offered to send someone round with the cash (presumerably out of his pocket to begin with) but there was too much going on then with funeral etc. so i just asked for the controller to deal with it as i counldnt cope with any more stress.
So i think you have done the right thing, your council should investigate and see what had happened and if this is a continueing problem.