Regulator Ofgem ordered energy supplier Ovo to pay £2.77 million in compensation after it delayed vital warm home discount payments to nearly 12,000 vulnerable customers for more than 19 months. Ofgem announced the intervention following what it called Ovo's failure to meet its obligations to some of the most vulnerable energy consumers.
The delays affected 11,646 customers who should have received rebates by March 31, 2024. Due to an internal system error, Ovo did not make the payments until November 2025. The delays impacted 7,726 customers on the priority services register, including 4,066 medically vulnerable customers.
Compensation breakdown
Each impacted customer will receive £150 in compensation. Medically vulnerable customers will get an additional £150. Those who experienced self-disconnection between March 31 and May 31, 2024, will receive an extra £100. Self-disconnection occurs when prepayment meter customers lack sufficient funds to top up their meter, causing it to cut out.
Ofgem's director of delivery and schemes, Neil Lawrence, criticized the delays. "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 said.
He added: "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."
Support for vulnerable households
The warm home discount scheme provides financial support to energy consumers on low incomes, those vulnerable to cold-related illness, or living in fuel poverty. The rebate specifically targets low-income pensioners and other low-income groups.
Ofgem stated that Ovo fell "significantly short of its obligations" and emphasized its commitment to strong regulatory 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," Lawrence said.
Note: This article was created with Artificial Intelligence (AI).
