Energy supplier Ovo has been mandated to pay £2.77 million in compensation following significant failures in delivering warm home discount payments to vulnerable customers, the industry regulator Ofgem has confirmed.
Lengthy Delays Impact Nearly 12,000 Households
Ofgem revealed that 11,646 Ovo customers received their warm home discount rebate more than 19 months late, with payments finally arriving in November 2025. The supplier missed the original deadline of March 31, 2024, due to an internal system error, leaving thousands without vital financial support during winter months.
Vulnerable Customers Bear the Brunt
Among those affected, 7,726 were on the priority services register, identifying them as vulnerable customers. Within this group, 4,066 were specifically classed as medically vulnerable, making the delays particularly concerning given their heightened need for consistent heating.
Neil Lawrence, director of delivery and schemes at Ofgem, 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."
Compensation Structure and Regulatory Response
The £2.77 million compensation package will be paid directly to affected households through the following structure:
- £150 for all impacted customers
- An additional £150 for medically vulnerable customers
- £100 for cases of self-disconnection between March 31 and May 31, 2024, where prepayment meter customers couldn't afford to top up their meters
Ofgem emphasised that Ovo fell "significantly short of its obligations" in providing this crucial support. The warm home discount scheme is designed to assist energy consumers on low incomes who are vulnerable to cold-related illnesses or living in fuel poverty, with rebates targeted at low-income pensioners and other disadvantaged groups.
Regulator's Warning to Energy Suppliers
Lawrence 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. 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's intervention highlights ongoing concerns about energy suppliers' operational reliability and their duty of care toward vulnerable customers, particularly during periods of economic pressure and seasonal cold weather.
