Ovo Energy has reached a settlement with Ofgem, the energy regulator for Great Britain, following an investigation into the company’s treatment of prepayment meter customers. The regulator determined that Ovo did not implement sufficient monitoring procedures for its prepayment meter customers, including those registered on the priority services list for vulnerable individuals, resulting in violations of consumer protection rules.
The settlement package comprises multiple components. Ovo will contribute £7m to Ofgem’s voluntary redress fund and provide a £3.4m package of credit and debt relief to affected vulnerable customers as an alternative to direct compensation. Additionally, the company is paying £1.1m to rural customers in the Scottish Highlands and islands after a separate compliance review revealed that certain customers lacked adequate access to engineer support for an extended period spanning from January 2022 through April 2024.
During the investigation period, Ofgem noted that Ovo did undertake some initiatives to support vulnerable customers, such as conducting welfare visits to individuals who had been disconnected from energy supply for more than three days without responding to communications. However, the regulator’s review identified instances where customers who exhausted their prepaid credit were not contacted by the supplier.
Ovo acknowledged the findings and stated that it has since implemented substantial improvements to its processes. The company emphasized that since 2024, it has significantly enhanced its policies, systems, training procedures, and customer support mechanisms, particularly regarding how it identifies and supports vulnerable populations.
This settlement represents a continued pattern of regulatory action against Ovo, following a £2.7m fine issued earlier this year for failing to distribute government winter energy bill assistance to thousands of vulnerable customers. The company is also undergoing an acquisition by German energy group E.ON, a transaction that would establish Britain’s largest gas and electricity supplier based on household numbers served.