Ovo Energy has been ordered by Ofgem to pay over £10 million for failing to adequately monitor vulnerable customers on prepayment meters, putting them at a "risk of harm." The settlement includes a £7 million payment to Ofgem's voluntary redress fund and a £3.4 million package of credit and debt relief for some of its most vulnerable customers.
Investigation Findings
Ofgem's investigation found that Ovo failed to consistently monitor and accurately record customer interactions, risking missing signs of vulnerability. The company also had unclear staff training materials, which contributed to the shortcomings.
Additional Compensation for Remote Areas
Ovo will also pay an additional £1.1 million to customers in the Scottish Highlands and Islands for inadequate engineer support between January 2022 and April 2024. This action follows a previous £2.77 million compensation order in January for delays in providing Warm Home Discount support to nearly 12,000 vulnerable customers.
Ofgem's boss stated that households are "starting to see pressure on bills from events in the Middle East," highlighting ongoing challenges in the energy market. The regulator emphasized the importance of suppliers adhering to rules designed to protect vulnerable consumers.
