OVO Energy customers will get £270 compensation over complaint failures

Ofgem says 1,395 customers will receive compensation after lengthy delays in getting complaints addressed, with a major update from the regulator issued today (Tuesday September 17).

Ovo Energy will pay out nearly £2.4 MILLION over customer complaint failures. Ofgem says 1,395 customers will receive compensation after lengthy delays in getting complaints addressed, with a major update from the regulator issued today (Tuesday September 17).

Ovo will pay £378,512 in compensation to affected customers and has given an extra £2m to the energy industry voluntary redress scheme “in recognition of the severity of consumer detriment caused”. The payments will work out at an average of £277 each.

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."

READ MORE Kate Garraway addresses daughter Darcey deciding to 'leave family home'

The payouts come after lengthy delays in getting their complaints addressed, in some cases up to 18 months. There were also delays in Ovo taking action over the Energy Ombudsman’s decision when complaints were progressed.

Jacqui said: “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: “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.”

The Energy Ombudsman said: “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.”