OVO Energy to Pay £2.7 Million in Compensation Following Warm Home Discount Delays
Energy supplier OVO is set to distribute over £2.7 million in compensation to thousands of customers after significant delays in delivering Warm Home Discount payments. The regulator Ofgem announced today that vulnerable households were left without crucial heating support for up to 19 months beyond the statutory deadline.
Delayed Payments Leave Vulnerable Households Without Support
According to Ofgem's statement released today, a total of 11,646 customers did not receive their Warm Home Discount rebates by the mandatory deadline of 31 March 2024. The regulator confirmed that these essential payments were not actually made until November 2025 - representing a delay of over 19 months that spanned multiple winter periods.
The delay meant that some of the most vulnerable customers were left without the support they were entitled to during the coldest winter months, Ofgem stated in their official announcement. Among those affected, 7,726 were registered on the Priority Services Register, identifying them as vulnerable energy consumers, with 4,066 of those being medically vulnerable individuals.
Compensation Structure for Affected Customers
OVO will distribute a total of £2,765,200 directly to affected customers through a structured compensation scheme:
- £150 for all impacted customers
- An additional £150 for medically vulnerable customers
- £100 for each occurrence of self-disconnection between 31 March and 31 May 2024
This compensation structure means that some customers could receive up to £400 in total payments. All affected customers have been contacted by OVO and do not need to take any further action, as compensation will be provided automatically.
Regulatory Response and Supplier Accountability
Neil Lawrence, Ofgem's Director of Delivery and Schemes, emphasised the importance of timely payments: The Warm Home Discount is a vital source of support for vulnerable energy consumers. Delays of this magnitude can cause real harm, particularly for those experiencing fuel poverty who also have medical needs.
Lawrence continued: Suppliers must act swiftly and accurately to deliver these payments on time - where this does not happen, we will intervene and are prepared to take strong action. On this occasion, OVO fell significantly short of its obligations, though we recognise the positive steps the company has taken.
The regulator has made clear that it expects all energy suppliers to maintain robust processes and respond quickly when issues arise. Failures of this kind are unacceptable, and we will continue to intervene where necessary to ensure customers receive the support they are entitled to, Lawrence added.
Background and Systemic Improvements
The Warm Home Discount programme operates on the government's behalf under Ofgem's oversight, designed specifically to assist households on limited incomes and those at risk from cold-related health issues or trapped in fuel poverty. The scheme delivers targeted energy bill reductions for low-income pensioners and other financially struggling households.
OVO's failure to meet the 31 March 2024 deadline resulted from an internal administrative error, which the company voluntarily reported to Ofgem last year. Following a thorough investigation, OVO has now upgraded its systems to prevent a recurrence of similar errors in the future.
An OVO spokesperson stated: We're very sorry that some customers did not receive their Warm Home Discount payments on time. We have worked closely with Ofgem to understand what went wrong and to put measures in place to ensure it does not happen again. We did not meet the high standards of service we set for ourselves, and all affected customers have now been compensated.
Broader Context of Energy Support Schemes
Last year, energy suppliers collectively invested £578.7 million in supporting low-income households through the Warm Home Discount scheme, highlighting the programme's significant scale and importance. When suppliers fail to meet their payment obligations, Ofgem typically steps in to ensure corrections are made and demands guarantees that underlying problems have been properly addressed.
The regulator has committed to maintaining close oversight of all energy providers' adherence to their Warm Home Discount responsibilities, with particular emphasis on ensuring payments reach consumers promptly during the critical winter period when support is most needed. In cases where supplier failings are deemed more severe, compliance or enforcement action is typically pursued to protect vulnerable consumers.
