Energy company Ovo has agreed to compensate thousands of customers following regulatory intervention due to its service failures, as reported by Wales Online. The regulator, Ofgem, has disclosed that Ovo will pay a penalty of £2.37 million for inadequacies in handling customer complaints. Approximately 1,395 Ovo customers will be receiving compensation for experiencing prolonged delays in the resolution of their complaints, with some cases dragging on for up to 18 months. Ofgem noted that there were also delays in Ovo implementing the decisions made by the Energy Ombudsman as complaints progressed.
In response to these shortcomings, Ovo will pay £378,512 in compensation to affected customers, in addition to contributing an extra £2 million to the Energy Industry Voluntary Redress Scheme, acknowledging the significant harm caused to consumers. Jacqui Gehrmann, Ofgem’s deputy director of retail compliance, emphasised the importance of energy companies ensuring timely and clear responses to customer complaints. She stated that Ofgem swiftly intervened when it identified Ovo’s performance falling below acceptable standards, underscoring the commitment to upholding consumer standards and the willingness to take decisive action against non-compliance within the industry.
Energy is deemed an essential service, and when issues arise, they can lead to distress for consumers. Ofgem’s focus remains on driving improvements in standards across the board, as demonstrated by holding Ovo to account for its lapses in customer service. The regulatory intervention serves as a reminder to all energy providers that failure to adhere to the prescribed guidelines will result in prompt and resolute actions from regulators to protect consumer interests.
This development underscores the significance of regulatory oversight in maintaining accountability and safeguarding consumer rights within the energy sector. As Ovo commits to rectifying its service deficiencies and compensating affected customers, the industry as a whole is reminded of the imperative to prioritise consumer welfare and ensure stringent adherence to regulatory standards.