Ovo Energy pays £ 8.9 million after submitting incorrect invoices

Ovo Energy pays £ 8.9 million after submitting incorrect invoices

Supplier is criticized by Ofgem for problems affecting more than 500,000 customers

Ovo Energy will pay £ 8.9 million after revealing a number of problems, including incorrect billing by over 500,000 customers over three years.

Ofgem recently criticized Ovo, the UK's second largest energy supplier after completing £ 500 million acquisition of SSE's energy supply arm, and said the company intentionally ignored the issues while focusing on expanding its operations.

Ofgem said that Ovo did not report much to him, although he was aware of the problems and slow to sort things out.

"Ovo Energy invoiced a number of customers and provided false information," says Anthony Pygram, director of behavior and head of Ofgem. The supplier did not prioritize fixing these problems when the business expanded. "

Ofgem's investigation caused a long-standing problem, including over 500,000 customers who submitted false annual statements for three years. Many of them have not been disclosed. Other problems included not providing renovation terms or moving to new tariffs when rates expire, about 10,000 customers and incorrect fees for 25,500 customers and the down payment limit.

For more than five years, Ovo Energy has acknowledged that errors and compliance processes in IT systems have caused many customers to obtain false or incomplete information. However, the company defended its record with customers.

Ovo Energy adheres to high standards, but we haven't always found it right, he said.We work hard to provide the latest digital innovations and excellent service, and we strive to provide them with the best experience possible. 

The company fixed the problems and returned customers who were affected by the overload of advance meter protection. The company agreed to pay £ 8.9 million to a voluntary compensation fund to help vulnerable clients.

"Our enforcement action sends a strong message that suppliers must get important services right for all their customers," says Pygram. Ovo Energy found violations and implemented processes to comply with future rules.

In a second Ofgem decision, Assistant Warehouse will pay £ 650,000 to overload 3,430 customers due to a system error when the price limit is applied.

Utility Warehouse has confirmed the error to Ofgem and approved over £ 150,000. The company returned the affected customers and paid another £ 300,000 for proactive payments of goodwill. In addition, Utility Warehouse pays £ 200,000 to Ofgem's voluntary compensation fund.

Ofgem said Public Products Warehouse has decided against a larger general payment order or formal sanction because of the steps it is taking to report the problem, correct the situation and also take steps to prevent it from happening again.