OVO, one of the leading energy providers in the UK, is set to compensate £2.37 million for lapses in addressing customer grievances.
Energy regulator Ofgem announced that OVO will pay £378,512 directly to the impacted customers.
In light of the “serious consumer detriment,” OVO has also contributed £2 million to a fund aimed at assisting energy customers and advancing energy-related projects, known as the energy industry voluntary redress scheme.
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Jacqui Gehrmann, deputy director of retail compliance at Ofgem, stated, “The company failed to sufficiently protect and address the needs of its customers when they required assistance the most. This situation is simply unacceptable.”
OVO ranks as the fourth-largest household energy supplier in Britain, serving approximately four million customers.
What transpired?
According to Ofgem, as many as 1,395 individuals faced significant delays in having their complaints resolved, with some experiencing waits of up to 18 months. The regulator indicated that affected customers would be contacted directly and no further action would be required from them.
Issues arose when complaints were elevated to the Energy Ombudsman, as delays were noted in implementing decisions made by the Ombudsman, as per the regulator’s commentary.
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A pensioner facing a reduction in fuel payments expresses concerns about his ability to endure the winter amidst rising energy costs.
Since Ofgem’s intervention in June, OVO has enhanced its complaints management process, as reported by Ofgem.
The company has now allocated additional resources, and the complaints framework has been revamped to ensure senior OVO personnel supervise all complaints.
There were raised concerns regarding the time consumed by OVO in addressing complaints referred by Citizens Advice Scotland and the subsequent actions on Energy Ombudsman decisions.
In light of the compensation ruling, a representative from OVO commented:
“We are now positioned third in the Citizen Advice rankings for energy supplier service.
“Nonetheless, we acknowledge that a specific segment of our customers in 2023 endured longer wait times for resolutions than we would prefer, and they were due a response from us; hence, we have dispatched them letters of apology along with compensation to assist.”
