Power firm minnow is probed over wrong bills

THE energy watchdog is to investigate whether Ovo Energy gave inaccurate information to customers over the amount of energy they had used.

Regulator Ofgem will study the estimates that the upstart energy firm gave customers to determine whether it has breached its licence conditions. Ofgem’s investigations will be centred on estimates the supplier gave customers during winter 2016/17, and the accuracy of the annual consumption figures that it issued in annual statements.

An Ofgem spokesman said incorrect estimates can lead to inaccurate bills.

He added: ‘This in turn can lead to customers being unable to properly manage their accounts and deciding to switch [supplier] based on incorrect information.’

Ovo, which was founded in 2009 and currently has about 800,000 customers, said: ‘We have a great track record in customer service and are always open to ways to improve it.’

Earlier this month Ofgem’s boss told MPs he is not getting a bonus this year as he apologised for moving too slowly to protect vulnerable gas and electricity consumers.

Dermot Nolan was accused at a parliamentary committee hearing of a ‘passive’ approach to his job of regulating the market, which had led to many customers paying higher bills.

Nolan said he regretted not taking swifter action to cap payments by vulnerable people on power companies’ standard variable tariffs.