Search Here

Ovo, a UK energy company, has been ordered to compensate 1,395 customers after regulators found them failing to deal with customer complaints.

According to BBC, they will be paying a total of $3M (£2.4M). The said number of Ovo customers complained about their problems, which were responded to by long delays of up to 18 months. This means that each complainant will get $301 (£271). Aside from that, Ovo will be paying the Energy Industry Voluntary Redress Scheme $2.2M (£2M), with the money being sent to charities that help incapable customers.

Besides compensation, Ovo already sent apology letters to affected customers. For now, Ofgem, the UK energy regulator, stated that no actions are needed from these customers.

Why UK Energy Regulator Ordered Ovo to Compensate Customers

The Independent shared that Ofgem ordered Ovo to compensate affected customers because their mishandling of complaints caused "undue distress." Ovo quickly acknowledged the delay and has since improved its management by providing more resources in its complaint-handling sector.

No specific customer issues were mentioned but usual issues to energy firms include disputes, billing errors, unexpected and lengthy service interruptions, and poor customer service.

Ovo is not the first example Ofgem has set for other energy firms. Since 2020, the energy regulator already gathered over $450M (£400M) by enforcing regulatory and compliance efforts to energy firms. The money was used to help customers struggling to pay their utility bills.