OVO Energy, the UK’s fourth-largest energy supplier, has agreed to a £2.37 million settlement after a regulatory investigation by Ofgem.
The investigation found significant delays in handling customer complaints, with some unresolved for as long as 18 months. Additionally, OVO failed to implement the Energy Ombudsman’s rulings in certain cases.
Under the settlement, OVO will directly compensate 1,395 affected customers with a total of £378,512. The company will also contribute an additional £2 million to the Energy Industry Voluntary Redress Scheme to address the serious consumer harm caused by these mishandled complaints.
In recent years, several major UK energy suppliers have faced compensation orders from Ofgem due to failures in customer service or billing practices.
In July, Outfox the Market was fined £1.8 million for not providing essential financial data to Ofgem. This fine reflects the increased scrutiny by the regulator on energy firms’ finances. Outfox, which serves around 100,000 UK customers, repeatedly failed to give detailed financial information. The company agreed to pay into Ofgem’s voluntary redress fund, which helps customers in vulnerable situations.
Earlier in April, Scottish Power was ordered to pay £1.5 million in refunds and compensation after overcharging nearly 1,700 households during the energy crisis and prior years. Ofgem’s investigation found that between 2015 and 2023, Scottish Power billed 1,699 direct debit customers at higher rates meant for those who pay upon receiving their bill.
In July 2020, British Gas agreed to pay £1.73 million in compensation following an investigation into failures in charging customers who had switched to pre-payment meters. These issues particularly affected vulnerable customers, some of whom had been left without energy for extended periods.