Energy firm Ovo has agreed to pay a £2.37 million penalty for failures in handling customer complaints, according to regulator Ofgem. Ofgem announced that 1,395 Ovo customers will receive compensation due to significant delays in addressing their complaints, with some cases taking up to 18 months to resolve. Additionally, Ofgem highlighted delays in Ovo acting on decisions made by the Energy Ombudsman in cases where complaints were progressed.
Affected customers will be compensated £378,512 by Ovo, with the company also contributing an extra £2 million to the Energy Industry Voluntary Redress Scheme as an acknowledgment of the consumer detriment caused. Jacqui Gehrmann, deputy director of retail compliance at Ofgem, emphasised the importance of energy as an essential service and stated that consumers deserve prompt and transparent responses when making complaints. Ofgem intervened swiftly after identifying Ovo’s substandard performance to ensure consumer standards are upheld.
Gehrmann added, “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.” The regulatory action serves as a reminder to all energy companies that Ofgem will take decisive measures if compliance with industry rules is lacking, Gehrmann concluded.
The energy firm Ovo’s commitment to rectifying its failings and providing compensation to affected customers reflects a step towards improving consumer experiences within the energy sector. As Ofgem continues to enforce standards and uphold consumer rights, companies are under pressure to deliver efficient and effective services to their customers.