UK regulator says OVO Energy to pay $14 million in probe settlements
OVO Energy Settlement and Regulatory Investigation Overview
Background of the Investigation
June 3 (Reuters) - Britain's energy regulator said on Wednesday OVO Energy agreed to pay about £10.4 million ($14 million) in settlements after an investigation found failures in its processes between 2018 and 2024 could have put prepayment meter (PPM) customers at risk.
Details of the Settlement
Voluntary Redress Fund and Customer Relief
The settlement includes a £7 million payment to a voluntary redress fund, the regulator Ofgem said, alongside a £3.4 million credit and debt relief for some of the energy supplier's customers, in lieu of compensation and formal penalties.
Regulator's Statement
"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," said Cathryn Scott, Director of Market Oversight and Enforcement for Ofgem.
OVO Energy's Response
Company Apology and Policy Improvements
OVO in a statement apologised for some of its historic processes falling short of standards.
"Keeping our customers safe and supported is hugely important to us and we recognise there were areas where we needed to do better. We have since worked to strengthen our policies and systems," a spokesperson said.
Additional Payments and Industry Context
Compensation for Scottish Highlands and Islands
Separately, OVO is also paying about £1.1 million to customers in Scotland's Highlands and Islands after a review found some rural households lacked proper access to engineer support between January 2022 and April 2024.
Upcoming Acquisition and Industry Impact
The company is set to be acquired by German utility group E.ON, creating one of the UK's biggest energy suppliers.
Similar Regulatory Actions
Ofgem took similar action against British Gas, which agreed to pay £20 million in redress over installing prepayment meters in homes without consent.
Additional Information
($1 = 0.7437 pounds)
(Reporting by Ankita Bora in Bengaluru; Editing by Nivedita Bhattacharjee)
