Ovo Energy is set to pay more than £10 million after an Ofgem investigation found serious failings in how the company monitored its prepayment meter (PPM) customers. This includes a significant sum directed towards those most affected, offering a practical saving for some of the UK's most vulnerable households.
The energy giant's shortcomings, identified between 2018 and 2024, exposed customers, particularly those on the Priority Services Register, to a 'clear risk of harm'. Ofgem highlighted issues such as a failure to consistently monitor interactions, lack of key checks, and inadequate support for customers who self-disconnected after running out of credit.
What changed and by how much?
Ovo Energy has agreed to a total payment exceeding £10 million. This breaks down into two key areas:
- £7 million will be paid into Ofgem's voluntary redress fund, which supports energy consumers.
- £3.4 million will be provided as credit and debt relief directly to some of its most vulnerable customers. This is in lieu of compensation for the monitoring failings.
In addition, Ovo Energy is paying £1.1 million to customers in the Scottish Highlands and Islands. This separate payment addresses a distinct failing where rural customers lacked appropriate access to engineer support for over two years, from January 1, 2022, to April 1, 2024.
Who is affected?
The primary group affected by the PPM monitoring failings are vulnerable customers, including those on the Priority Services Register. These are individuals with additional needs, such as elderly residents, people with disabilities, or those with medical conditions.
If you are an Ovo Energy customer and are due to receive credit or debt write-off payments, you will be contacted directly by Ovo. You do not need to take any action to receive these payments.
What this means for you
If you are an Ovo Energy prepayment meter customer identified as vulnerable, you could receive a direct credit to your account or have existing debt written off, offering a tangible saving on your energy costs. For all prepayment meter users, this action by Ofgem signals a renewed focus on protecting consumers and enforcing stricter rules.
What to do right now
For those affected by the £3.4 million credit and debt relief, there is no immediate action required. Ovo Energy will contact eligible customers directly. If you are concerned about your energy supply or believe you are vulnerable, it is always wise to ensure your energy supplier is aware of your circumstances.
When are these changes effective?
The payments are part of a settlement following an investigation into failings between 2018 and 2024. While the investigation period is in the past, the payments and strengthened processes are effective now. Ofgem also introduced new, stricter rules for prepayment meters from November 8, 2023, requiring suppliers to use audio or body cameras during warrant installations or site welfare visits to check for vulnerabilities.
The Prepayment Penalty: More than just a fine
Ofgem's Cathryn Scott, Director of Market Oversight and Enforcement, stated that while prepayment meters can be a 'positive choice for many customers', it's 'not suitable for everyone'. This sentiment comes against a backdrop where customers on prepayment meters have historically paid significantly more for their energy. Estimates suggest this 'poverty premium' could be £100-£270 per year more than the cheapest direct debit tariffs.
The failings by Ovo Energy, such as not following up with customers who ran out of credit and self-disconnected, highlight the severe risks faced by those already paying more for their energy. An Ovo Energy spokesperson acknowledged, "We accept that some of our historic processes fell short of expected standards, and we are sorry for that." The company states it has since strengthened its policies to better support vulnerable households.
This isn't the first time Ovo has faced penalties for customer support issues. In January 2026, Ofgem ordered a £2.77 million payment after nearly 12,000 vulnerable customers experienced lengthy delays in receiving their Warm Home Discount support.
Where to get help
If you are a vulnerable customer, or have additional needs, you should ensure you are registered on your energy supplier's Priority Services Register. This register helps suppliers identify and provide extra support to those who need it most.
For further information or if you have concerns about your energy supplier, you can contact Ofgem directly or seek advice from consumer advocacy groups.
Sources
- Ofgem — Investigation findings and official statements
- Ovo Energy Spokesperson — Company statement