Ofgem opens compliance engagement in respect of OVO's complaints handling process
Decision
- Publication date
- Industry sector
- Generation and Wholesale Market
- Supply and Retail Market
- Licence type
- Electricity Supply Licence
- Gas Supplier Licence
- Gas Shipper Licence
Ofgem has opened compliance engagement with OVO Energy’s licensed supply companies1 (OVO) due to serious concerns regarding the resolution of Citizens Advice Extra Help Unit (EHU) consumer complaints (a service managed by Citizens Advice Scotland, advocating on behalf of vulnerable energy consumers across GB) and the implementation of Energy Ombudsman (EO) remedies.
Ofgem engages regularly with the EHU and EO. Recently both organisations have raised concerns with Ofgem regarding matters relating to the handling and resolution of complaints by OVO.
The EO is concerned that OVO has problems implementing EO remedies in respect of complaints referred to it. We understand that, despite engagement by the EO, this situation became progressively worse over time.
The EHU, which assists vulnerable customers, reported that OVO accounted for a significant volume of its open cases and is an outlier for aged cases. Despite the EHU having ongoing discussions with OVO regarding its complaint management performance, OVO appear to have struggled to effectively organise and manage the complaints.
We expect all suppliers to treat customers fairly and work swiftly to resolve issues once they are raised. 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.2
Ofgem takes customer service and complaints handling very seriously and is disappointed with the lack of progress made by OVO towards resolving these issues.
Consequently, we have intervened, working closely with OVO to assess any detriment that there may be to customers and have set clear expectations and improvement targets. We have requested detailed reporting on a range of complaint metrics and set OVO the objective of addressing all outstanding complaints, implementing all outstanding EO decisions, while reducing complaint resolution times and the volume of referrals made to the EHU and EO.
OVO has assured us that they take complaints resolution seriously and is working to improve its complaint and referral processes.
Based on our interactions with OVO, we are confident that our intervention has resulted in more focus being placed on improving this area. However, if we do not see improvements in OVO’s performance we will consider taking further steps, including the possibility of enforcement action.
The opening of this compliance case does not imply that Ofgem has made any findings about non-compliance by OVO. Ofgem will report in due course on the findings. As with any compliance engagement, the outcome could range from a decision that there is no need for any further action through to the opening of an enforcement investigation, if appropriate.
1OVO (S) Electricity ltd; OVO Electricity Ltd; OVO (S) Gas Ltd; and OVO Gas Ltd.
2 7(1)(a) and (b) of The Gas and Electricity (Consumer Complaints Handling Standards) Regulations 2008 and SLCs 0, 4A, and 5 of the gas and electricity supply licences.