Energy supplier Ovo has been mandated to pay substantial compensation totalling £2.77 million following significant delays in distributing Warm Home Discount payments to nearly 12,000 vulnerable customers. The ruling from regulator Ofgem comes after an internal system error at the company caused rebates to be issued more than 19 months late, leaving households without crucial financial support during winter periods.
Regulatory Action Over Delayed Support Payments
Ofgem revealed that 11,646 Ovo customers finally received their Warm Home Discount rebate in November 2025, far beyond the original deadline of March 31 2024. The regulator stated that Ovo had fallen "significantly short of its obligations" in delivering this essential assistance programme designed to help those on low incomes, particularly during colder months when energy costs typically rise.
Vulnerable Households Affected by System Failure
Among those impacted by the payment delays, 7,726 customers were registered on priority services lists indicating their vulnerable status. Within this group, 4,066 were specifically classified as medically vulnerable individuals who are particularly susceptible to cold-related health issues. The compensation package has been structured to reflect the varying degrees of hardship experienced by different customer groups.
Compensation Structure for Affected Customers
The £2.77 million compensation will be distributed directly to affected households through several payment tiers:
- All impacted customers will receive £150 as base compensation
- Medically vulnerable customers will receive an additional £150 payment
- Customers who experienced "self-disconnection" between March 31 and May 31 2024 will receive £100
Self-disconnection refers to situations where prepayment meter customers, unable to afford top-up payments, had their energy supply automatically cut off. This practice particularly affects those experiencing fuel poverty who may struggle to maintain consistent energy access.
Regulator Emphasises Programme Importance
Neil Lawrence, director of delivery and schemes at Ofgem, emphasised the critical nature of the Warm Home Discount scheme in supporting vulnerable energy consumers. "The warm home discount is a vital source of support for vulnerable energy consumers," he stated. "Delays of this magnitude can cause real harm, particularly for those experiencing fuel poverty who also have medical needs."
Mr Lawrence added a strong warning to energy suppliers regarding their responsibilities: "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. Failures of this kind are unacceptable, and we will continue to intervene where necessary to ensure customers receive the support they are entitled to."
Background on Warm Home Discount Scheme
The Warm Home Discount programme is a government-backed initiative designed to assist energy consumers on low incomes, particularly those vulnerable to cold-related illnesses or experiencing fuel poverty. The scheme typically provides rebates to qualifying households, including low-income pensioners and other vulnerable groups, helping to offset winter energy costs when heating demands are highest.
This regulatory action against Ovo represents one of the more significant compensation orders related to the Warm Home Discount scheme in recent years, highlighting Ofgem's increasing focus on ensuring energy suppliers meet their obligations to vulnerable customers promptly and effectively.
