An investigation by regulator Ofgem found inadequate monitoring of prepayment customers, including those on the Priority Services Register
OVO Energy has agreed to pay £10million following an Ofgem investigation(Image: Visions via Getty Images)
OVO Energy has agreed to pay out more than £10million after it left vulnerable prepayment customers at risk.
An investigation by regulator Ofgem found inadequate monitoring of prepayment customers, including those on the Priority Services Register.
The Priority Services Register provides vulnerable households with extra help including emergency energy support and advance warnings of planned supply interruptions.
Ofgem said OVO breached rules that are “designed to protect customers in vulnerable situations – exposing consumers to a clear risk of harm”.
OVO has agreed to pay £7million to the Ofgem voluntary redress fund, plus a package worth £3.4million of credit and to wipe off debt for some of its most 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.
“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.”
OVO is also paying out another £1.1million to customers in the Scottish Highlands and Islands after Ofgem said it failed to offer adequate engineer support to rural households for more than two years from January 2022 to April 2024.
In January, OVO was ordered to pay £2.77million in compensation after nearly 12,000 vulnerable customers suffered lengthy delays in getting their Warm Home Discount support.
The regulator said: “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.”
OVO said it has since strengthened its systems and has introduced a new policy to identify and support vulnerable customers. It comes just weeks after German rival E.On agreed to buy OVO in a deal which 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.”
