Customers have claimed their energy usage has been miscalculated after transferring over to the energy giant or having a smart meter installed. Contact online >>
Customers have claimed their energy usage has been miscalculated after transferring over to the energy giant or having a smart meter installed.
Energy firm Ovo has been told to pay out £2.4m after the regulator found it had not been dealing with customer complaints correctly. Ofgem said that 1,395 Ovo customers were hit by problems...
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The regulator identified that 1,395 OVO customers were affected by issues including lengthy delays in addressing complaints, in some cases up to 18 months, and delays actioning the Energy...
Energy firm Ovo is to pay £2.37m penalties for failing to handle customer complaints effectively, energy regulator Ofgem hassaid. Ovo will pay £378,512 in compensation to affected customers...
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OVO Electricity Ltd, OVO (S) Gas Ltd, and OVO Gas Ltdhave agreed to pay a total of £2.37 million in compensation and redress payments after Ofgem identified a number of failings in how the supplier handled customer complaints.
The regulator identified that 1,395 OVO customers were affected by issues including lengthy delays in addressing complaints, in some cases up to 18 months, and delays actioning the Energy Ombudsman''s decision when complaints were progressed.
OVO will pay £378,512 in compensation directly to affected customers and has also paid an additional £2 million to the Energy Industry Voluntary Redress Scheme in recognition of the severity of consumer detriment caused.
Affected customers will be contacted directly by OVO, and do not need to take any action.
Following Ofgem''s intervention OVO has increased its complaint handling resources, enhanced its complaints management system and improved its case management processes to make sure senior colleagues have oversight of complaints.
Jacqui Gehrmann, deputy director of retail compliance at Ofgem, said: "Energy is an essential service. When things go wrong, it can cause consumers a lot of distress. In this case OVO failed to adequately protect and respond to their customers when it was needed most. This is not acceptable.
"Consumers deserve a clear and timely response when they make a complaint, and that''s why we stepped in quickly when we identified that OVO''s performance was falling below acceptable standards.
"We are committed to driving up standards for consumers across the board, and this action serves as a reminder to all energy companies that we will not hesitate to take swift and definitive action when they fail to comply with the rules."
Ofgem first engaged with OVO last June after reported concerns over the time taken to address complaints referred by Citizens Advice Scotland''s Extra Help Unit, and to action decisions from the Energy Ombudsman.
The regulator identified key areas of improvement including upgrading its complaint handling system and addressing resourcing issues. Ofgem then asked OVO to provide a plan on how it would address and resolve these issues.
Ofgem has collected more than £400 million in payments since 2020 through their compliance and enforcement activities which has been used to help households struggling with their bills.
In 2023 alone, Ofgem recovered a total of £77.2 million in fines, customer refunds, compensation and alternative action payments – up by £50.5 million compared to 2022.
Natasha Gilmour, head of operational support at Citizens Advice Scotland, said:"The Extra Help Unit is a Great Britain-wide service managed by Citizens Advice Scotland to help vulnerable consumers experiencing difficulties with their energy suppliers.
"While it''s rare for a compliance case to be necessary to resolve such issues, it is reassuring to see how OVO has responded to the investigation by Ofgem, and we are satisfied that the new practices implemented are ensuring good and timely outcomes for our clients."
"We''ve worked closely with energy suppliers since 2008 and we''re hopeful these relationships will continue to grow as we work together to improve outcomes for consumers needing our support."
The Energy Ombudsman commented:"We welcome today''s news that following compliance engagement between Ofgem and OVO, consumers will be compensated for OVO''s failures to implement the remedies set by the Energy Ombudsman.
"Our role is to resolve disputes between consumers and energy suppliers, providing independent and impartial decisions that ensure fair outcomes. These decisions are legally binding, and suppliers are required to implement them within 28 days. While the majority of resolutions are carried out on time, there are instances where consumers face unacceptable delays.
"It is reassuring to see that this investigation is now concluded, and that OVO has reviewed and improved its systems and procedures."
Energy companies regulated by Ofgem that breach their licence conditions may be asked to pay a sum of money to the Energy Industry Voluntary Redress Scheme to remedy any harm caused to consumers.
TheEnergy Redress Fund provide money to charities to deliver energy related projects that support energy consumers in vulnerable situations. It also helps to deliver benefits to consumers, who were negatively impacted by the specific issue that triggered the redress payment.
OVO Electricity Ltd, OVO Gas Ltd and OVO (S) Gas Ltd are OVO Energy''s licensed supply companies and are referred to as ''OVO'' or ''OVO Energy'' in the above press release.
We are a non-ministerial government department and an independent National Regulatory Authority. Our role is to protect consumers now and in the future by working to deliver a greener, fairer energy system.
Energy firm Ovo is to pay £2.37m penalties for failing to handle customer complaints effectively, energy regulator Ofgem hassaid.
Ovo will pay £378,512 in compensation to affected customers and has agreed to hand an extra £2m to the Energy Industry Voluntary Redress Scheme "in recognition of the severity of consumer detriment caused", according to Ofgem.
The watchdog said that 1,395 Ovo customers will receive compensation after they were affected by lengthy delays in seeing their complaints addressed, with some waiting up to 18 months. Ovo has around four million customers in total.
It said there were also delays in Ovo acting on the Energy Ombudsman''s decision when complaints were progressed.
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