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

Affected customers will be contacted directly by OVO, and do not need to take any action. 

Following Ofgem’s intervention OVO has 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. 

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. 

“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.” 

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. 

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.”