Ovo Energy Failed to Prevent Vulnerable Sister from Accumulating £10,800 in Unpaid Bills? INVESTIGATION ENSUES

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Hey there! Let me talk you through a tale of a sister, her energy account, and a large sum of money.

This sibling, now in her 70s, grapples with learning difficulties and health issues. With her condition worsening, my brother-in-law and his wife stepped in to manage her finances, including her energy account with Ovo.

In February, they called Ovo together, and my brother-in-law was given permission to handle the account. They even provided meter readings.

A few weeks later, he received an energy bill revealing an astonishing £10,824 credit on his sister's account. Excited, he told her about it, and she expressed a desire to get the money back.

While trying to claim the refund, he encountered roadblocks. A manager needed to authorize the refund since it was so big. Yet, time passed, and he hadn't heard back. The delay became a issue, as his sister now needed the money to pay for extra care upon her hospital release.

To make matters more complicated, Ovo refused to speak to him without his sister's recent permission, even though she had already granted it. He reached out to me, hoping I could help.

Now, let's talk about why this excess credit might have built up. On average, £215 per household was sitting unused in energy accounts in 2024! That's about £3.28 billion for direct debit customers alone—and perhaps a lot more if we consider all bill pay methods.

This sister paid her energy bills monthly by visiting the Post Office or having her son, who also has learning difficulties, handle it for her. However, she didn't realize she was actually spending less than her estimated monthly payment due to the lack of meter readings, which can result in higher bills. This overpayment occurred for many years, even before her account switched to Ovo.

Companies are permitted to use idle balance funds to boost their finances, essentially providing them with interest-free loans. Our consumer champion, Helen Crane, noted that a system should be in place for energy firms to alert customers with large credit balances. Although firms can reduce overpayments via direct debit, those who prefer in-person payments aren't subject to the same reviews.

Though the sister had given permission, Ovo didn't make it simple to get the money she was entitled to. They even sent an email regarding someone else's account in error. After chasing for weeks, progress seemed stagnant. The last time he contacted Ovo, they said his sister's approval had expired, despite it being given in February.

With scams and financial exploitation being prevalent, it's essential for companies to thoroughly verify anyone handling another person's funds. However, the sister had already given her permission, and the delay was largely due to Ovo's slow response.

Being in an exceptional situation, with the sister hospitalized and urgently needing the money, I stepped in to help. After contacting Ovo, a senior complaints manager reached out, apologizing for the confusion and outlining the changes made to my brother-in-law's account.

In the end, the sister received a refund of approximately £12,000, covering both her credit balance and a part of what she was overcharged by her previous supplier. An Ovo spokesperson confirmed the refund had been processed.

I hope this financial aid helps the family, and I encourage those in similar situations to explore power of attorney applications at an early stage. Having a POA in place can significantly ease the burden during stressful times.

Additional Insights:

Power of Attorney: If you are managing finances for someone with learning difficulties or health issues, you can apply for a power of attorney to handle their finances and claim any unclaimed tax refunds or credits on their behalf.
Filing Tax Returns: Ensure your family member's tax returns are complete and filed accurately to claim energy tax credits and prevent missing out on potential refunds.
Carry-forwards and Amended Returns: If energy credits are not fully utilized or missed, tax returns can often be amended within a set period to receive refunds or claim missing credits. Eligible energy credits can sometimes be carried over to future years.
Energy Tax Credits: Solar tax credits, energy efficiency improvements, and other renewable energy credits are available to qualified homeowners. It's essential to understand the specific credit types, deadlines, and eligible expenses for the tax year in question.
Cointinuous Monitoring of Energy Account: Regularly checking for unclaimed tax credits and adjusting energy usage by submitting accurate meter readings can help prevent accumulating unnecessary energy credit balances.

The sibling's health issues and learning difficulties required the family to manage her finances, including her energy account.
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