OVO ENERGY PAYS £10.4M OVER PREPAYMENT METER RULE BREACHES

OVO Energy will pay more than £10.4 million to customers following an Ofgem investigation into prepayment meter rule breaches. The energy regulator found that OVO failed to meet its obligations relating to prepayment meter customers. The payout will go directly to affected customers as redress for the breaches identified during the probe. Ofgem confirmed the settlement following the conclusion of its investigation into the supplier.

Prepayment meters require customers to pay for energy in advance, and suppliers must follow specific rules designed to protect those users. Ofgem's investigation centred on whether OVO met those required standards for this category of customer. The £10.4 million figure represents the total redress package agreed between OVO and the regulator. OVO is one of the United Kingdom's largest domestic energy suppliers.

The action forms part of Ofgem's wider effort to enforce compliance across the energy sector on prepayment meter standards. Regulators have placed increased scrutiny on energy suppliers over their treatment of prepayment meter customers in recent years. The redress payment will be distributed to customers identified as affected by the rule breaches. Ofgem has the authority to require suppliers to pay compensation directly to customers where compliance failures are established.