Overcharging rap for firm that bought SSE’s Perth arm

OVO, which has just bought over SSE’s retail arm in Perth, has been forced to pay £8.9 million for overcharging its customers.

The firm sent inaccurate statements to more than half a million customers, while others did not receive a bill at all.

Despite knowing about these issues, OVO did not tell the energy watchdog Ofgem.

At least one customer was overcharged by more than £4500.

The firm agreed to a settlement package with Ofgem instead of paying a fine, and the money will be paid to vulnerable customers rather than the Treasury.

Anthony Pygram, head of 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.”

Ofgem investigated failures at OVO dating back to July 2015.

OVO Energy also underestimated consumption one winter, seeing customers under or overcharged, with 10,000 customers not given statements of renewal terms when their tariff ended.

And around 17,500 prepayment meter customers were also not charged the right amount initially, while a further 8000 paid more than OVO was allowed to charge.

However OVO will not be refunding customers who were overcharged by less than £10.

A spokesperson for OVO said:“Since the day we were founded, serving our customers has been our number one priority.

“We strive to give them the best experience by working hard to provide the latest digital innovations and excellent service.

“We have pioneered a new business model for the industry and have constantly innovated to simplify energy for our customers.

“OVO Energy holds itself to high standards, but we have not always got it right.

“We accept Ofgem’s findings of issue regarding estimation processes, information formatting and pricing errors.”

After buying SSE Retail earlier this month, OVO took on 3.5m additional customers and 8000 more members of staff, including a number based in Perth.