Ovo, an energy firm, has been fined £2.37 million due to customer service failures, as reported by Wales Online. The industry watchdog, Ofgem, imposed the penalty on Ovo for significant delays in addressing customer complaints, affecting nearly 1,400 customers. Some complaints took up to 18 months to resolve, and there were also delays in implementing decisions from the Energy Ombudsman.
Ofgem stated that Ovo will pay £378,512 in compensation to affected customers and an additional £2 million to the Energy Industry Voluntary Redress Scheme to acknowledge the severity of the issues. Ovo will directly contact the impacted customers. Jacqui Gehrmann, Ofgem’s deputy director of retail compliance, criticised Ovo’s failure to adequately respond to customers when needed, describing it as unacceptable. Ofgem intervened swiftly upon identifying Ovo’s below-standard performance.
Ovo was first contacted by Ofgem in June last year regarding concerns about delays in addressing complaints referred by Citizens Advice Scotland and in implementing decisions from the Energy Ombudsman. Following the investigation, Ovo has enhanced its complaint handling procedures, improved its complaints management system, and ensured senior staff oversight of complaints.
The Energy Ombudsman emphasised the importance of timely responses to consumer complaints and commended Ovo for reviewing and enhancing its systems and procedures. An Ovo spokesperson expressed regret over the delays in resolving complaints from a specific group of customers in 2023 and outlined steps taken to address the situation, including issuing apologies and compensation.
This penalty serves as a reminder of the importance of prompt and effective customer service in the energy sector. Ovo’s commitment to improving its complaint handling processes is crucial in restoring customer trust and ensuring timely resolution of issues.