OVO Energy is set to pay £10 million after failing to adequately monitor vulnerable customers using prepayment meters, according to energy regulator Ofgem.
The watchdog stated that the company breached rules designed to protect customers in vulnerable situations, exposing consumers to a clear risk of harm.
OVO has agreed to a settlement that includes a £7 million payment to Ofgem's voluntary redress fund. This fund is used to support households at risk from cold homes and high energy bills, paid into by energy companies that breach licensing conditions.
Ofgem Investigation Findings
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."
She added that prepayment meters are a positive choice for many customers, helping them control energy use, but strong monitoring must protect vulnerable consumers.
This investigation is part of Ofgem's wider work to raise standards across the energy market and strengthen consumer protections, challenging suppliers to identify and support customers in difficulty.
OVO's Previous Support
OVO has contributed £11.9 million to support vulnerable customers between 2022 and 2025, including donations to charity, free electric blankets, and smart thermostats.
The company serves millions of households, including in Birmingham, and competes with British Gas, EDF, EON, Octopus, and others.
Ofgem urged anyone worried about paying their bill to contact their supplier as early as possible to access available support and discuss suitable options.
