A total of 1,395 Ovo customers were affected by issues including lengthy delays in addressing complaints – some cases up to 18 months, according to regulator Ofgem.
It said Ovo also delayed actioning the Energy Ombudsman’s decision when complaints were progressed.
The regulator revealed it first approached Ovo about the concerns in June last year after frustrated customers reported complaint handling delays to Citizens Advice Scotland’s Extra Help Unit.
As such, the gas and electricity supplier will pay £378,512 in compensation directly to affected customers, plus an additional £2m to the Energy Industry Voluntary Redress Scheme “in recognition of the severity of consumer detriment”.
Affected customers will be contacted directly by Ovo, so if you believe you’re impacted, Ofgem confirmed you do not need to take any action.
‘This is not acceptable’
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 added that following its 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.
The Energy Ombudsman added: “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.”
‘A letter of apology and compensation to help’
An Ovo spokesperson, said:“At Ovo we want to make sure we give our customers the best experience we can at every turn. We’re now third in the Citizen Advice energy supplier rankings for service.
“However, we recognise that a particular group of our customers in 2023 waited longer than we’d like for a resolution and were overdue a response from us, so we’ve sent them a letter of apology and compensation to help.”
