OVO Energy will pay £7m into Ofgem’s voluntary redress fund after the regulator found failures in how the supplier protected vulnerable prepayment meter customers.
Ofgem has closed its investigation into the company after concluding OVO’s inadequate monitoring of prepayment meter customers, including those on the Priority Services Register, breached rules designed to protect people in vulnerable situations.
The regulator said the failures exposed customers to a clear risk of harm.
OVO has agreed to a settlement package which includes the £7m redress payment and a £3.4m package of credit and debt relief for some of its most vulnerable customers.
Customers due payments will be contacted by OVO and do not need to take any action.
The company is also in the process of paying £1.1m to customers in the Scottish Highlands and Islands after separate compliance engagement found some rural customers did not have appropriate access to engineer support between 1 January 2022 and 1 April 2024.
Cathryn Scott, Director of Market Oversight and Enforcement at 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.”
The investigation focused on OVO’s treatment of existing prepayment meter customers, not on the forced installation of meters without consent.
Ofgem found OVO failed to consistently monitor and accurately record customer interactions, with evidence showing key checks and safeguards were not always carried out. The regulator said these gaps risked missing signs of vulnerability, leaving some customers exposed to harm.
It also found problems with staff training materials, which were at times unclear, inconsistent and contained conflicting guidance.
Ofgem said OVO had appropriate policies on paper for customers on the Priority Services Register but these were not reliably followed in practice.
As a result, some customers were not properly identified, supported or kept up to date on the register, increasing the risk that vulnerable households missed out on protections they were entitled to receive.
The regulator also found 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.
Ms Scott said: “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.”
She added the investigation was part of Ofgem’s wider work to raise standards across the energy market and strengthen consumer protections.
OVO undertook remedial action during the investigation, including welfare visits for customers who had been disconnected for more than 72 hours and had not responded to contact.
The case follows a wider Ofgem market compliance review into prepayment meter installations across 2022 and 2023, which saw eight suppliers excluding OVO pay a combined £73.6m in compensation, debt write-off and hardship payments.
OVO paid £100,000 in compensation under that framework and Ofgem said the company has contributed £11.9m to support vulnerable customers between 2022 and 2025, including charity donations, free electric blankets and smart thermostats.
Ofgem urged anyone worried about paying their bill to contact their supplier as early as possible to access support and discuss options suited to their circumstances.
Copyright © 2026 Energy Live News LtdELN