Ovo Energy Hit With £8.9m Fine for Over Charging

By Gary Cutlack on at

Energy supplier Ovo has been fined a huge £8.9m for misleading its customers, as part of a right old billing mess that saw around 500,000 people sent incorrect statements and led to both the undercharging and overcharging of thousands of subscribers.

Technically the money is not being considered a fine, though, as a deal almost certainly conducted over a sandwich buffet with energy regulator Ofgem negotiated the £8.9m fee, which will go into a "voluntary redress fund" to be used to lower the bills of vulnerable customers.

Ovo's string of poor decisions are listed by Ofgem, which included the sending of wrong statements or no statements at all, forgetting to remind people about renewal tariffs, and deciding not to reimburse sub-£10 overpayments due to the hassle of it all. Smaller rival Utility Warehouse has also been shamed, landing itself a £650,000 fine for getting its price-capped tariffs wrong and overcharging thousands of its subscribers. [Ofgem via BBC]