OVO Energy has agreed to pay a £10.4 million settlement after the energy regulator, Ofgem, found that it failed to adequately support vulnerable customers using prepayment meters. The supplier will pay £7 million into Ofgem's Voluntary Redress Fund and provide £3.4 million in credit and debt relief to affected customers. It follows an investigation into how the energy supplier supported existing prepayment meter customers between 2018 and 2024. Ofgem concluded that inadequate oversight left vulnerable households exposed to a 'clear risk of harm'.
Why has OVO Energy been fined?
The penalty stems from OVO Energy failing to properly monitor and record customer interactions. Ofgem found that key checks and safeguards were not consistently carried out, meaning warning signs of vulnerability could easily be missed. The investigation highlighted issues with customers on the Priority Services Register. This register is designed to ensure that those with additional needs, such as elderly residents or people with medical conditions, receive extra support from their energy supplier. However, some customers were not properly identified or supported. Furthermore, Ofgem noted that OVO's staff training materials were at times unclear, inconsistent, and contained conflicting guidance.
In a separate compliance case, OVO Energy is also paying £1.1 million to customers in the Scottish Highlands and Islands. This is because the company failed to offer adequate engineer support to rural households for over two years, from January 2022 to April 2024. An OVO spokesperson stated that the company accepts some of its historic processes fell short of expected standards and has apologised. The company says it has since worked to strengthen its policies and systems to better identify and support vulnerable customers.
Cathryn Scott, director of market oversight and enforcement for Ofgem, said: “It is clear that OVO fell short in its support of vulnerable prepayment meter customers, and it’s right that they’ve taken action to improve their processes. As a result of our investigation, vulnerable customers will receive debt write-off or credit payments alongside a payment into our voluntary redress fund.“
What happens if you are affected?
If you are an OVO Energy customer who is eligible for credit or debt relief as part of this settlement, you do not need to take any action. The company will contact eligible customers directly to arrange the necessary support. Those in the Scottish Highlands and Islands who were affected by inadequate engineer support during the specified period will also receive a share of the £1.1 million payout.
If you believe you have been affected by these issues but have not been contacted, you can reach out to OVO Energy directly to check your eligibility. If you remain unsatisfied with the response, you have the option to take your complaint to the Energy Ombudsman, which is a free service.
What to do if you are struggling to afford your energy bills
If you are struggling to keep up with your energy costs, it is important to take action as soon as possible. Your energy supplier has a responsibility to help you find a solution.
- Contact your supplier - Reach out to your energy provider early to discuss your situation. They may be able to arrange an affordable repayment plan or offer alternative ways to manage your account.
- Sign up for the Priority Services Register - If you are vulnerable due to age, health, or other circumstances, you can register for free extra support from your supplier.
- Seek independent guidance - Organisations like Citizens Advice offer free, impartial assistance on managing energy debt and understanding your rights.
We explain all the steps you can follow in our article 'What to do if you’re struggling to pay your energy bills'. To keep your bills as low as possible, read the tips in our article 'How to save money on your energy bills'. There are also a number of grants and schemes available for those who are most vulnerable. More information and help on the cost of living can be found in our Cost of Living guide.
MTTM AI (beta) 
