EDF, EON and OVO set to pay £1,000 direct into customer accounts - Birmingham Live

EDF, EON and OVO set to pay £1,000 direct into customer accountsOfgem has cracked down on poor practices as £5.6 million in payouts and £13 million in debt write-offs announced.NewsJames

Rodger Content Editor08:03, 01 Jun 2025Ofgem has cracked down on poor practices as £5.6 million in payouts and £13 million in debt write-offs announced. Thousands of energy customers are set

to receive compensation over forced prepayment meters. Ofgem has cracked down on poor practices as £5.6 million in payouts and £13 million in debt write-offs announced.

UK households will receive compensation or have their energy debts wiped after an Ofgem investigation revealed widespread failings in how energy suppliers forced customers onto prepayment

meters (PPMs).

‌ The regulator confirmed that eight energy firms – Scottish Power, EDF, E.ON, Utility Warehouse, Good Energy, TruEnergy, Ecotricity, and OVO – will now pay compensation and offer support to

affected customers.

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More than 40,000 households are due to receive a share of £5.6 million in compensation, with an additional £13 million in energy debt being written off for customers who had a PPM forcibly

installed between 1 January 2022 and 31 January 2023.

Article continues below “One case is one too many,” said Tim Jarvis, Ofgem’s director general of markets. “This has been one of the most detailed reviews in Ofgem’s history… Our priority has

been to put things right and ensure we don’t see bad practice repeated.”

Goodwill payments of £40-60 will be paid by suppliers on a case by case basis have been announced, as well as £250 compensation over insufficient debt support, £250 compensation over unfair

customer treatment and £500 compensation over vulnerability not considered.

£1k compensation is coming over inappropriate installation, switch or use of PPM. Energy UK’s CEO, Dhara Vyas, noted that suppliers are walking a tightrope between protecting vulnerable

customers and preventing debts from spiralling across the board.

Article continues below “Involuntary installations were a last – but necessary – resort,” Vyas said. “Bad debt drives up costs for all customers. The industry is keen to work with Ofgem on

proposed relief schemes.”

Compensation should be paid directly to your customer account, and you may also have a portion of your debt written off.