Thu Sep 19 08:07:22 UTC 2024: ## OVO Group Pays Millions for Complaint Handling Shortcomings, Announces Winter Support Package

**LONDON -** OVO Group, a major UK energy supplier, has been fined £2.37 million ($3.2 million) by the Office of Gas and Electricity Markets (Ofgem) for failing to adequately handle consumer complaints. The regulator found that 1,395 customers experienced delays in addressing their complaints, with some waiting as long as 18 months for resolution.

As part of the penalty, OVO will pay £378,512 ($501,400) directly to affected customers and an additional £2 million ($2.65 million) to the Energy Industry Voluntary Redress Scheme, which supports charities and energy consumers in vulnerable situations.

Following Ofgem’s intervention, OVO has taken steps to improve its complaint handling processes by increasing staffing and implementing a new complaint management system.

“Energy is an essential service, and when things go wrong, it can cause consumers a lot of distress,” said Jacqui Gehrmann, deputy director of retail compliance at Ofgem. “We are committed to driving up standards for consumers across the board.”

In separate news, OVO announced a €50 million ($66.2 million) customer support package for the winter. The package includes direct debit reductions, emergency credit top-ups, repayment plan extensions, payment holidays, free energy-saving devices, and support for pensioners and charities. The initiative is aimed at helping customers struggling with rising energy bills, a concern shared by 80% of people in the UK, according to OVO’s own polling.

OVO also called for the introduction of a social tax to alleviate energy poverty, arguing that it would have a positive impact on the most vulnerable households.

OVO’s CEO, David Buttress, acknowledged that the support package is not a long-term solution and emphasized the need for broader systemic changes to ensure affordability for all. “We need to make the energy system work better for everyone,” he said. “That starts with targeted support in the form of a social tariff.”

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