Ovo unveils £50m hardship scheme

Ovo Energy has revealed a £50 million “hardship scheme” to help its customers who are facing extreme financial difficulties as a result of coronavirus.

Only customers who were with Ovo on 1 March 2020 are able to apply for the scheme, which will commence on 8 April.

Last month the government agreed emergency measures with energy suppliers to help protect the most vulnerable customers during the pandemic. Furthermore Energy UK is leading an effort to lobby the Department for Business, Energy and Industrial Strategy (BEIS) to seek support in dealing with business customers struggling to pay their bills.

The scheme will allow Ovo customers who are most in need and eligible for support to contact customer services directly for either emergency top-up credit or temporary payment reductions to their monthly payments. If the application is accepted, support will then be made available for an initial period of up to three months.

The supplier is urging only those with real and immediate need to apply to ensure the credit can be made available as quickly as possible together with a plan to pay it back over a manageable period.

Separately Ovo says it is working with other retailers and Ofgem to find an industry-wide, longer-term solution to customers facing financial hardship.

Stephen Fitzpatrick, Ovo Group chief executive and founder, said: “Now, in addition to the health impacts of coronavirus, financial hardship for many of our customers is setting in. This hardship scheme will provide some immediate support for those most impacted by coronavirus.

“Ovo is also working with other energy companies and Ofgem to develop a sustainable long-term position for all customers. This plan will take some time to put into action. In the meantime, we are doing what we can to give reassurance and support to our customers.

“It is essential we find a way to keep the lights on in every home in Britain in the coming months.”

Elsewhere in the utilities sector Thames Water says it has worked with 175 hospitals and care homes across its region to bolster resilience plans during the coronavirus outbreak.

As the crisis worsens across the capital, contingency plans for water and wastewater services have been strengthened to include provisions in the case of supply interruptions.

Thames worked with the NHS to prepare the Nightingale hospital at London’s Excel, which has been converted to accommodate up to 4,000 patients suffering from Covid-19.