Ofgem has concluded its investigation into OVO Energy, finding that the company failed to adequately monitor prepayment meter customers, including those on the Priority Services Register, exposing them to a clear risk of harm.
OVO has agreed to pay £7 million into Ofgem’s Voluntary Redress Fund and provide £3.4 million in credit and debt relief for vulnerable customers. Customers affected will be contacted by the firm if they are due to get support.
The settlement follows Ofgem’s conclusion last month of a three-year investigation into British Gas, which found the company had breached licence conditions protecting vulnerable customers. British Gas knew about its failings from an external review in 2018 and an internal audit in 2021, but failed to take adequate action. It agreed to pay a £20 million fine and write off up to £70 million in energy debt for vulnerable customers.
Ofgem’s OVO investigation also identified a separate failing affecting rural customers in the Scottish Highlands and Islands, where some customers did not have appropriate access to engineer support between January 2022 and April 2024. OVO is paying £1.1 million compensation to those customers.
The findings come in the same week that the Guardian reported the case of a 76-year-old ScottishPower customer, was forced to pay over £8,000 on the spot after receiving a bill based on an incorrect meter reading dating back to 2022, nine times his normal annual payment.
His daughter’s complaint went unanswered for a month and a resolution was only resolved after the media became involved. ScottishPower has since refunded the payment.
A spokesperson for the End Fuel Poverty Coalition, said:
“These are not isolated incidents. They are symptoms of an industry that has repeatedly placed profit over the welfare of the people it is supposed to serve.
“The OVO findings, coming so soon after the British Gas settlement, show that the forced prepayment meter scandal runs far deeper than any single company. Customers on the Priority Services Register are there precisely because they are most at risk. Failing to monitor them adequately is not a minor compliance issue.
“The Scottish Power case is beyond the pale. There should be checks and balances in place to stop vulnerable customers receiving bills like this. You would really think that if an older pensioner suddenly rang up and transferred thousands of pounds to their energy company, someone in the firm or at the bank would have flagged that. Instead, his family were left to fight for months to get it resolved.
“The rural failings in the Highlands and Islands point to a further dimension of this problem. Remote and rural customers face additional barriers, and suppliers have a legal obligation to account for that. The evidence suggests those obligations are not being met.
“The Energy Independence Bill must bring in further protections for consumers. It must end forced prepayment meter installations and introduce robust protections for every vulnerable customer.”