Nearly 1,400 customers of OVO Energy are set to receive compensation after the company was slapped with a £2.4 million penalty for failing to handle customer complaints properly. The energy regulator, Ofgem, said OVO didn’t take care of their customers when they needed help the most, which led to this hefty fine.

In this article, we’ll break down what happened, why OVO was fined, and what’s being done to fix the issues.

What Happened?

OVO Energy, one of the largest energy suppliers in the UK, was found to have mishandled many of their customers’ complaints. This led to nearly 1,400 customers being affected, with some waiting a long time to get their issues resolved. Ofgem, the regulator that watches over energy companies, investigated and found that OVO wasn’t responding to complaints quickly or effectively.

As a result, OVO has been fined £2.37 million. Out of this amount, more than £378,000 will go directly to the affected customers. The rest, £2 million, will be paid into the Energy Industry Voluntary Redress Scheme. This scheme helps customers and supports new energy projects.

What Did Ofgem Say?

Jacqui Gehrmann, a representative from Ofgem, had some strong words for OVO. She said the company “failed to adequately protect and respond to their customers when it was needed most.” This means that when customers had problems, OVO wasn’t quick or effective in helping them. Ofgem felt this wasn’t fair to customers, especially at a time when energy prices have been a big concern for many households.

Ofgem also found that some customers had to wait up to 18 months to get their complaints addressed. Imagine waiting for more than a year and a half for someone to fix a problem with your energy bill – that’s what some OVO customers went through. It’s no surprise that Ofgem took action.

How Were Customers Affected?

Many customers complained about long wait times for their problems to be solved. Ofgem found that 1,395 people were left waiting, with some issues dragging on for far too long. Even worse, when complaints were sent to the Energy Ombudsman – a service that helps resolve energy-related disputes – OVO didn’t take action quickly on their decisions. This caused even more delays for customers who were already frustrated.

What Will Happen Now?

Luckily, OVO has taken steps to improve its complaint-handling process. After Ofgem got involved in June, the company made changes to address the problems. Customers who were affected will be contacted directly by OVO. They don’t need to do anything – the company will reach out to them to offer an apology and compensation.

An OVO spokesperson said that they are now ranked third in the Citizens Advice energy supplier rankings for customer service. While this is good news, the company admitted that a group of customers in 2023 waited far longer than they should have. These customers will receive both an apology and compensation from OVO.

What Is the Energy Industry Voluntary Redress Scheme?

You might be wondering what this scheme is and why OVO is paying £2 million into it. The Energy Industry Voluntary Redress Scheme is a fund that helps customers who have been affected by issues with their energy providers. It also supports projects that aim to improve energy services or reduce the environmental impact of energy use.

By contributing £2 million to this fund, OVO is not only making up for its mistakes but also helping to support energy-related projects that could benefit other customers in the future.