​​OVO agrees settlement in relation to Ofgem’s investigation of its monitoring of prepayment meter customers

The regulator’s investigation concluded that OVO’s inadequate monitoring of PPM customers, including those on the Priority Services Register (PSR), led to breaches of Ofgem’s rules designed to protect customers in vulnerable situations ​​– exposing consumers to a clear risk of harm.  

In recognition of Ofgem’s findings, OVO has agreed to a settlement package which includes:  

• A £7 million payment to Ofgem’s Voluntary Redress Fund.  
• Providing a ​​​​​​£3.4 million package of credit and debt relief for some of its most vulnerable customers, in lieu of compensation.  

 Customers who are due payments will be contacted by OVO Energy and do not need to take any action.  

OVO is also in the process of paying £1.1 million to customers in the Scottish Highlands and Islands following compliance engagement, which identified that some rural customers did not have appropriate access to engineer support during the period from 1st January 2022 and 1st April 2024.  

During the investigation, OVO undertook remedial actions to support vulnerable customers, including welfare visits for customers who had disconnected for more than 72 hours, and not responded to any communication during that period.  

Cathryn Scott, Director of Market Oversight and Enforcement for Ofgem, said:  

“It is clear that OVO fell short in its support of vulnerable PPM 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.  

“This investigation forms part of Ofgem’s wider work to raise standards across the energy market and strengthen consumer protections, challenging suppliers to do more to identify and support customers in difficulty.  

“Anyone worried about paying their bill should contact their supplier as early as possible to access the support available and discuss the options that suit their circumstances.”  

​​​This investigation was opened due to concerns about OVO’s processes around the treatment of existing PPM customers, rather than the installation of PPMs without a customer’s consent. Ofgem’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. The regulator also identified issues with staff training materials, which were at times unclear, inconsistent, and contained conflicting guidance.  

The regulator also found failures in how OVO delivered its PSR obligations. While the company had appropriate policies in place on paper, these were not reliably followed in practice. As a result, some customers were not properly identified, supported, or kept up to date on the PSR, increasing the risk that vulnerable households did not receive the protections they were entitled to.  

In addition, OVO did not consistently support customers who self-disconnected from their energy supply. In some cases, customers who had run out of credit received no communication or follow-up from the supplier. This meant that vulnerable customers experiencing self-disconnection were not provided with the assistance required, again highlighting a wider gap between OVO’s documented processes and how they were delivered in practice.  

A separate Market Compliance Review (MCR) framework assessed conduct across the wider energy sector in relation to PPM installations across the period 2022-23, with eight suppliers (excluding OVO) paying a combined £73.6 million in compensation, debt write-off and hardship payments. OVO paid £100,000 in compensation under the MCR framework.  

OVO has contributed £11.9 million to support vulnerable customers between 2022 and 2025, including donations to charity, free electric blankets and smart thermostats.