OVO Energy has agreed to pay more than £10 million following an investigation by Ofgem that revealed inadequate monitoring of prepayment customers, including those on the Priority Services Register. The Priority Services Register is designed to provide vulnerable households with extra help, such as emergency energy support and advance warnings of planned supply interruptions.
Ofgem Investigation Findings
Ofgem stated that OVO breached rules intended to protect customers in vulnerable situations, exposing consumers to a clear risk of harm. The regulator's investigation found that OVO failed consistently to monitor and accurately record customer interactions, with evidence showing that key checks and safeguards were not always carried out. These gaps in oversight risked missing signs of vulnerability, leaving some customers exposed to harm. Additionally, issues were identified with staff training materials, which were at times unclear, inconsistent, and contained conflicting guidance.
Compensation Package
OVO has agreed to pay £7 million to the Ofgem voluntary redress fund, along with a package worth £3.4 million in credit and debt write-offs for some of its most vulnerable customers. Furthermore, OVO is paying an additional £1.1 million to customers in the Scottish Highlands and Islands after Ofgem found that the company failed to offer adequate engineer support to rural households for more than two years, from January 2022 to April 2024.
Cathryn Scott, director of market oversight and enforcement for Ofgem, commented: "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. Prepayment meters are a positive choice for many customers, helping them stay in control of their energy use and reporting high levels of satisfaction – but it’s not suitable for everyone and strong monitoring must be in place to protect vulnerable consumers."
Previous Penalties
In January, OVO was ordered to pay £2.77 million in compensation after nearly 12,000 vulnerable customers suffered lengthy delays in receiving their Warm Home Discount support. The company has since strengthened its systems and introduced a new policy to identify and support vulnerable customers. This comes just weeks after German rival E.On agreed to buy OVO in a deal that will create Britain’s largest electricity supplier.
An OVO spokesperson said: "We accept that some of our historic processes fell short of expected standards and we are sorry for that. Keeping our customers safe and supported is hugely important to us, and we recognise there were areas where we needed to do better."
