OVO to pay £2.37m after regulator Ofgem finds failings in complaint handling
OVO Energy has been forced to pay £2.37m in compensation after Ofgem identified a number of failings in how the energy supplier handled customer complaints.
The Bristol-based group has said it has now 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.
Regulator Ofgem 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 – an average payout of £270 – and has also paid an additional £2m to the Energy Industry Voluntary Redress Scheme.
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.”
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.
