You are here: Home - Household Bills -

Two energy suppliers to pay over £9m for overcharging customers

0
Written by:
29/01/2020
Ovo Energy has been fined £8.9m by the regulator Ofgem for overcharging customers, while Utility Warehouse will pay out £200,000 for the same reason.

Ovo Energy has agreed to pay £8.9m for sending inaccurate statements to more than 500,000 customers between July 2015 and February 2018.

Some Ovo customers didn’t receive an annual statement at all.

Ofgem said Ovo, which is about to take on an additional 3.5 million customers from SSE, was aware of these issues but did not report them and was slow to put things right.

Ovo has accepted and corrected these breaches and refunded customers affected by overcharging.

Anthony Pygram, director of conduct and enforcement at Ofgem, said: “Ovo Energy billed a number of its customers incorrectly and issued them with inaccurate information.

“The supplier did not prioritise putting these issues right whilst its business was expanding.

“Our enforcement action sends a strong message that suppliers must get basic services right for all their customers. Ovo Energy has accepted the breaches and put processes in place to comply with the rules in future.”

Meanwhile, Utility Warehouse is to pay £200,000 into Ofgem’s voluntary redress fund after it overcharged thousands of Warm Home Discount customers due to a technical error.

The supplier will also refund and compensate all customers to the tune of £450,000.

In December 2019, Utility Warehouse discovered that 3,430 of its customers who receive the Warm Home Discount payment, but pay for their energy when they receive a bill, were paying above the correct default tariff cap level between January and November 2019.

The supplier reported the issue to Ofgem and updated its systems.

It confirmed it was in the process of issuing full refunds to all affected customers.

A statement from Ovo said: “OVO Energy holds itself to high standards, but we have not always got it right. We accept Ofgem’s findings of issues regarding estimation processes, information formatting and pricing errors.”

A Utility Warehouse spokesperson said: “A small number of affected customers were mistakenly categorised within the price cap, which led to an overcharge.

“As soon as we realised the mistake we reimbursed them for the overcharge, gave them an additional credit on their account and put them onto the correct tariff.”

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

The savings accounts paying the most interest

If one of your jobs this month is to get your finances in order, moving your savings to a higher paying deal i...

Coronavirus and your finances: what help can you get?

News and updates on everything to do with coronavirus and your personal finances.

Everything you need to know about being furloughed

If you’ve been ‘furloughed’ by your company, here’s what it means…

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

Having a baby and your finances: seven top tips

We’re guessing the Duchess of Cambridge won’t be fretting about maternity pay or whether she’ll still be...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co...

Money Tips of the Week

Privacy Preference Center

Necessary

Advertising

Analytics

Other

Read previous post:
petrol price
Supermarkets slash pump prices by up to 3p per litre

Asda sparked a pump price war as it announced it would slash the cost of both petrol and diesel by...

Close