The supplier is also donating a further £4,000 to Step Change, which helps energy consumers who have become mired in debt.
Under Ofgem’s guaranteed standards suppliers are required to meet minimum standards of customer service, including when they make visits to customers’ homes, and must pay compensation when they fail to do so.
Ofgem has been working with Ovo to improve its service after the regulator received reports in 2014 that customers had not received the compensation they were entitled to. Ofgem has decided not to take “formal enforcement action” against the supplier as it has agreed to the redress package.
Earlier this week British Gas Business was ordered to pay £4.5 million to the Carbon Trust for missing a deadline to supply large business customers through advanced electricity meters by April 2014.
Ofgem announced in November that a new independent body will be set up to manage redress payments made by energy companies.