Independent energy provider Ovo is currently being investigated by the industry watchdog over allegations that they have been using incorrect data when charging customers.
Ofgem will be looking into figures collected during winter 2016/17 to see if Ovo have been billing incorrectly.
Ovo is one of the smaller providers in the industry. Founded back in 2009, they currently provide energy to around 800,000 people. Stephen Fitzpatrick, the CEO of Ovo energy, has always tried to distance himself from the practises of the larger energy giants and has been critical of them “charging what they think they can get away with”. These words could come back to bite him if they are found to have been misleading customers.
A spokesman for Ovo Energy said, “We have a great track record in customer service and are always open to ways to improve it.”
Ofgem has said they are currently unsure how many of Ovo’s customers have been victims of data glitches and that they are not implying any wrongdoing yet and are simply responding to complaints. An Ofgem spokesperson said: “the investigation will examine whether Ovo Energy breached licence conditions related to giving customers consumption information that is accurate, or based on a best estimate, complete, and not misleading.
“Incorrect consumption figures can lead to customers receiving inaccurate bills, annual statements and other important information.
“This in turn can lead to customers being unable to properly manage their accounts and deciding to switch based on incorrect information.”
If Ovo is found to have misled clients, they could face a hefty fine which could prove costly at a time when they are attempting to tighten their grip on the market.