The UK’s fourth-largest energy supplier, OVO, has conceded to a £2.37 million settlement following an inquiry by the energy regulator, Ofgem.
The regulator identified considerable delays in addressing customer complaints, with some left unresolved for up to 18 months. OVO also failed to implement several rulings issued by the Energy Ombudsman in certain cases.
As part of the settlement, OVO will compensate 1,395 affected customers with £378,512. An additional £2 million will go to the Energy Industry Voluntary Redress Scheme, reflecting the significant consumer harm caused by the mishandled complaints.
Recent years have seen several major UK energy suppliers ordered to compensate customers after failing to meet standards in customer service or billing practices. In July, Outfox the Market was required to pay £1.8m for failing to provide essential financial data to Ofgem. This company, serving around 100,000 customers, repeatedly failed to offer an appropriate level of detail regarding its financial health, ultimately agreeing to contribute to Ofgem’s voluntary redress fund, which supports vulnerable customers.
Similarly, in April, Scottish Power was directed to pay £1.5m in refunds and compensation after incorrectly billing nearly 1,700 households at a higher rate meant for those who pay upon receiving their bill. This overcharge occurred during the energy crisis peak and in preceding years.
In July 2020, British Gas agreed to a £1.73m compensation package after an investigation disclosed failures in accurately charging customers who had switched to pre-payment meters. These issues affected vulnerable customers, some of whom were left without energy for extended periods.
OVO’s agreement to the settlement underscores the ongoing regulatory scrutiny within the UK’s energy sector aimed at ensuring compliance and protecting consumer rights.