Ofgem takes action against energy suppliers

Those from Great Britain the fourth largest energy supplierOVO, has agreed a £2.37m settlement following an Ofgem regulatory investigation.

The the energy watchdog found significant delays in resolving customer complaints, with some unresolved for up to 18 months.

In addition, OVO did not take into account the decisions of the Energy Ombudsman in certain cases.

As part of the regulation, Listed in London the supplier will directly compensate 1,395 affected customers with £378,512.

In addition, £2 million will be paid to the Energy Industry Voluntary Redress Scheme, reflecting the serious harm caused to consumers by mishandled complaints.

Several major UK energy suppliers have been forced to pay compensation to customers in recent years following investigations by the regulator, Ofgem, into failing to meet standards in customer service or billing practices.

In July, Outfox the Market was forced to pay £1.8m to Ofgem for failing to provide key financial data to the energy regulator, which had stepped up its scrutiny of energy firms’ finances.

The challenger energy supplier, which serves around 100,000 customers in the UK, has repeatedly failed to provide an “adequate level of detail” about its financial health.

The company eventually agreed to pay into Ofgem’s voluntary compensation fund, which supports customers in vulnerable situations.

In April, Scottish Power has been ordered to pay £1.5m in repayments and compensation after overcharging nearly 1,700 households at the height of the energy crisis and in previous years.

This settlement followed an investigation by Ofgem, the energy regulator, which revealed that between 2015 and 2023, Scottish Power incorrectly billed 1,699 direct debit customers at a higher rate intended for those who pay on receipt.

In July 2020, British Gas agreed to pay £1.73 million in compensation after an investigation revealed failures to correctly charge customers who switched to pre-paid meters.

The problems affected vulnerable customers, some of whom were left without power for long periods.

By CityAM

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