Ovo Energy ordered to pay £2.4m for customer complaint failings
Ofgem says supplier failed to resolve complaints fairly, promptly or without causing further detriment
Affected customers will receive automatic compensation of between £20 to £100
Energy supplier Ovo has been ordered to pay a record £2.4m for failing to resolve customer complaints fairly, promptly and without causing further distress. Ofgem’s investigation found that Ovo failed to adequately train and resource its complaints handling team, leading to long delays, poor communication and incorrect resolutions. The regulator said that Ovo’s complaints handling processes were “not fit for purpose” and that the company had “failed to meet the standards that customers rightly expect”. As a result of Ofgem’s investigation, Ovo has agreed to pay a £2.4m penalty, which will be used to fund consumer protection projects. The company has also agreed to make a number of improvements to its complaints handling processes, including: * Hiring and training more customer service staff * Improving communication with customers * Investing in new technology to streamline the complaints process Ofgem’s director of retail, Philippa Pickford, said: “Ovo Energy failed its customers by not resolving their complaints fairly, promptly or without causing further distress. This is unacceptable and we have taken firm action to protect consumers.” “We welcome Ovo’s commitment to improve its complaints handling and we will be monitoring the company closely to ensure that these improvements are made.” Ovo Energy said that it “deeply regrets” the failings identified by Ofgem and that it is “committed to improving its service to customers”. The company said that it has already taken a number of steps to improve its complaints handling, including: * Hiring 500 new customer service staff * Investing in new technology to streamline the complaints process * Introducing a new complaints handling charter Ovo said that it is “confident” that these measures will lead to a significant improvement in its complaints handling performance. Customers who have been affected by Ovo’s complaints handling failings will receive automatic compensation of between £20 to £100. Customers will be contacted directly by Ovo to inform them of the compensation payment.
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