Energy supplier will pay £2.7 million in compensation to some customers after payments were made 19 months late
Energy giant OVO will pay over £2.7 million to customers Ofgem announced today(Image: Getty Images)
Energy supplier OVO is set to pay out more than £2.7 million to customers after it failed to deliver Warm Home Discount (WHD) rebates to thousands of people ahead of a crucial deadline. Those affected could receive up to £400.
In a statement released today, regulator Ofgem revealed that some of Britain’s most vulnerable households were left without crucial support to cover essential heating costs after the payments arrived 19 months behind schedule.
According to Ofgem, a total of 11,646 customers did not receive their money by the statutory deadline of 31 March 2024. The regulator confirmed these rebates were not paid until November 2025 – over 19 months late.
Ofgem stated: “The delay meant that some of the most vulnerable customers were left without the support they were entitled to during the coldest winter months.”
Among those impacted, 7,726 were registered on the Priority Services Register (PSR), identifying them as vulnerable energy consumers, whilst 4,066 of those on the PSR were medically vulnerable.
OVO will distribute a total of £2,765,200 in compensation directly to affected customers. This comprises £150 for all impacted customers, an extra £150 for medically vulnerable customers, and £100 for each occurrence of self-disconnection between 31 March and 31 May 2024.
All affected customers have been contacted by OVO and do not need to take any further action, as they will be compensated automatically, Ofgem confirmed. Neil Lawrence, Ofgem’s Director of Delivery and Schemes, stated: “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. 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.
“We expect all suppliers to have robust processes in place and to act 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.”
The regulator will maintain its watchful eye over all energy providers’ adherence to their Warm Home Discount responsibilities, with expectations that payments reach consumers promptly during the critical winter period when they’re needed most.
Operating on the government’s behalf, Ofgem oversees the WHD programme, which is designed to assist households on limited incomes and those at risk from cold-related health issues or trapped in fuel poverty. The scheme delivers this help through targeted energy bill reductions for low-income pensioners and other financially struggling households.
OVO failed to meet the 31 March 2024 deadline for distributing Warm Home Discount payments to customers following an internal administrative error. The company voluntarily reported the mistake to Ofgem last year.
Following a thorough investigation, OVO has now upgraded its systems to prevent a recurrence of the error.
Last year, energy suppliers collectively invested £578.7 million in supporting low-income households through the Warm Home Discount scheme.
When suppliers fail to meet their payment obligations, Ofgem steps in to ensure corrections are made and demands guarantees that the underlying problems have been addressed. In cases where a supplier’s failings are deemed more severe, compliance or enforcement action is typically pursued.
An OVO spokesperson said: “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.”