Ovo Energy, one of the fastest-growing independent energy suppliers and a poster child of the industry, has been accused of potentially putting customers’ money at risk by demanding that they pay upfront.
Ecotricity, a rival independent supplier, has complained to Ofgem and says that it is considering referring the company to the Financial Conduct Authority, the City watchdog.
Ovo, which denies the allegation, has also been accused of breaching a licence condition that Ecotricity claims gives it an unfair advantage and discriminates against lower-income households.
Ovo said that the interpretation of the licence condition had been ambiguous. The supplier described the regulation as “not in customers’ best interests” but, after 18 months of discussions with Ofgem, it said it will comply from today. The company