Energy supplier Ovo has agreed to pay a £2.4 million penalty for mishandling customer complaints, according to regulator Ofgem.
Ofgem stated that 1,395 Ovo customers will receive compensation after experiencing significant delays in having their complaints resolved, with some waiting as long as 18 months. The regulator also noted delays in Ovo implementing the Energy Ombudsman’s decisions on progressed complaints.
Ovo will pay £378,512 in compensation to affected customers and has contributed an additional £2 million to the Energy Industry Voluntary Redress Scheme “in recognition of the severity of consumer detriment caused,” as reported by Ofgem.
This comes amid increased scrutiny of millionaire Stephen Fitzpatrick, who charged Ovo Energy £43 million last year as concerns over his extensive business empire’s finances grow.
Jacqui Gehrmann, Ofgem’s deputy director of retail compliance, commented:
“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.”
