Ofgem tells energy firm Ovo it must take action on customer complaints

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The energy regulator has told Ovo Energy it must improve its handling of complaints, after 'serious concerns' were raised by a Citizens Advice team working with vulnerable customers. 

Pressure has grown on Ofgem to act over the Bristol-based energy firm after This is Money sent it a dossier of 200 customer complaints in the last few months, with many believing they are not being billed correctly. 

Our investigation is ongoing. 

Ofgem has opened 'compliance engagement' with Ovo, and said it would be working closely with the firm to 'assess any detriment that there may be to customers' and set clear expectations and improvement targets. 

Concerns: Ofgem said Ovo needed to address outstanding customer complaints, and reduce the number of cases that are referred to the Energy Ombudsman

Ovo will be required to address all outstanding customer complaints, as well as reducing the time it takes to resolve issues and reducing the number of referrals that are made to the Energy Ombudsman and Citizens Advice. 

If Ofgem does not see improvements in Ovo's performance, it said it would consider taking further steps, including enforcement action. 

As well as our dossier of cases, concerns have been raised by the Citizens Advice Extra Help Unit, which works with vulnerable energy customers in Scotland, as well as by the Energy Ombudsman itself.

Ofgem said: 'The Energy Ombudsman is concerned that Ovo has problems implementing Energy Ombudsman remedies in respect of complaints referred to it. 

'We understand that, despite engagement by the Energy Ombudsman, this situation became progressively worse over time.

'The Extra Help Unit, which assists vulnerable customers, reported that Ovo accounted for a significant volume of its open cases and is an outlier for aged cases.'

In the cases we've sent to Ofgem and Ovo, some have said they had seen their monthly direct debit payments hiked by hundreds of pounds per month, while others had 'balance adjustments' of hundreds or even thousands of pounds, without an explanation of what these were for. 

One told us her usual monthly bill of £150 had been ratcheted up to £3,600 for one month alone.

Improvements needed: Ovo has also been told by the regulator to reduce the time it takes for customers to resolve their complaints 

The opening of the compliance case does not imply that Ofgem has made any findings about non-compliance by Ovo - the company which took over SSE in January 2020. 

Ofgem said: 'When customers have a problem, it is important that suppliers take steps to put things right. 

'We expect that all customer complaints are received, handled, and processed in a timely and efficient manner in accordance the relevant regulations and Ovo's licence obligations.

'Ofgem takes customer service and complaints handling very seriously and is disappointed with the lack of progress made by Ovo towards resolving these issues.

A spokesman for Ovo added: 'Ofgem did not identify any non-compliance from Ovo on this matter. 

'We continue to place serious emphasis on the support we provide to our customers and have assured Ofgem of this.'