OVO will pay automatic £271 payment into energy customers' bank accounts

The regulator identified that 1,395 OVO customers were affected by issues.

OVO will pay a total of £2.37 million in compensation and redress payments after Ofgem identified a number of failings in how the supplier handled customer complaints. The regulator identified that 1,395 OVO customers were affected by issues.

The issue include 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 and has also paid an additional £2 million to the Energy Industry Voluntary Redress Scheme in recognition of the severity of consumer detriment caused.

The compensation works out at £271 a customer. 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.

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“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.”

Natasha Gilmour, head of operational support at Citizens Advice Scotland, said: “The Extra Help Unit is a Great Britain-wide service managed by Citizens Advice Scotland to help vulnerable consumers experiencing difficulties with their energy suppliers. While it’s rare for a compliance case to be necessary to resolve such issues, it is reassuring to see how OVO has responded to the investigation by Ofgem, and we are satisfied that the new practices implemented are ensuring good and timely outcomes for our clients.”

“We’ve worked closely with energy suppliers since 2008 and we’re hopeful these relationships will continue to grow as we work together to improve outcomes for consumers needing our support.” The Energy Ombudsman commented: “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.”