OVO Energy has agreed to pay more than £10 million after the UK energy regulator concluded that weaknesses in its processes exposed some prepayment meter customers to a risk of harm.
The agreement closes an Ofgem investigation into the supplier’s treatment of existing prepayment meter (PPM) customers, particularly those in vulnerable circumstances. The regulator found shortcomings in how OVO monitored customers, maintained records, and delivered protections linked to the Priority Services Register (PSR).
Ofgem Identifies Failures in Customer Monitoring and Support
According to Ofgem, OVO’s inadequate monitoring of prepayment meter customers led to breaches of rules intended to protect consumers in vulnerable situations. The regulator said the company did not consistently monitor and accurately record customer interactions, and evidence showed that key checks and safeguards were not always carried out.
Ofgem stated that these gaps in oversight created a risk that signs of vulnerability could be missed. The investigation also identified problems with staff training materials, which were described as unclear, inconsistent, and at times containing conflicting guidance.
The regulator further found shortcomings in OVO’s delivery of its PSR obligations. While policies existed, Ofgem said they were not reliably followed in practice. As a result, some customers were not properly identified, supported, or kept up to date on the register, increasing the possibility that vulnerable households did not receive the protections available to them.
Issues were also identified in the company’s handling of self-disconnection cases. According to Ofgem, some customers who ran out of credit on their prepayment meters received no communication or follow-up. The regulator said this meant vulnerable customers experiencing self-disconnection were not always provided with the support required.
Cathryn Scott, Ofgem’s Director of Market Oversight and Enforcement, said OVO had “fell short in its support of vulnerable PPM customers” and that it was appropriate for the company to take action to improve its processes.
Settlement Includes Redress Payments and Customer Support Measures
The settlement package includes a £7 million payment to Ofgem’s Voluntary Redress Fund and a further £3.4 million in credit and debt relief for some of OVO’s most vulnerable customers. According to Ofgem, this package will be provided in lieu of compensation and formal penalties. Customers eligible for payments will be contacted directly by the supplier.
During the investigation, OVO introduced remedial measures, including welfare visits for customers who had been disconnected for more than 72 hours and had not responded to communications during that period.
Separate from the settlement, OVO is also paying £1.1 million to customers in the Scottish Highlands and Islands. According to Ofgem, compliance engagement found that some rural customers did not have appropriate access to engineer support between January 1, 2022, and April 1, 2024.
OVO acknowledged the findings and apologized for shortcomings in its historical processes. A company spokesperson said customer safety and support are “hugely important” and added that the supplier has strengthened its policies and systems, including introducing a new policy aimed at identifying and supporting vulnerable customers.
Reuters reported that the investigation covered failures in processes between 2018 and 2024. The development comes as OVO prepares to be acquired by German utility group E.ON, a transaction expected to create one of the UK’s largest energy suppliers.
