Thousands of OVO Energy customers are set to receive compensation payments after significant delays in receiving their Warm Home Discount rebates. The energy supplier has been ordered to pay £2.77 million in compensation to nearly 12,000 affected households.
Compensation Details for Delayed Payments
The Warm Home Discount scheme provides eligible customers with a £150 rebate directly applied to their electricity bills, typically between October and March each year. However, OVO Energy failed to meet the March 31, 2024 deadline for these payments, with some customers not receiving their rebate until November 2025 – more than 19 months late.
Vulnerable Customers Affected
Of the nearly 12,000 impacted customers, 7,726 were on the priority services register, indicating they were vulnerable customers. Within this group, 4,066 were specifically classified as medically vulnerable, highlighting the serious nature of these payment delays for those most in need of support.
Compensation Structure
The compensation package includes several components designed to address the inconvenience and potential hardship caused by the delays:
- All affected customers will receive £150 compensation
- Medically vulnerable customers will receive an additional £150
- Customers who experienced self-disconnection between March 31 and May 31, 2024 will receive £100
This means some customers could potentially receive up to £400 in total compensation, providing significant financial relief during a period of elevated energy costs.
Regulatory Response and Company Apology
Energy regulator Ofgem confirmed that OVO missed the deadline due to an internal error, which the company reported to the watchdog last year. Ofgem has acknowledged the positive steps OVO has taken to address the issue, including system changes to prevent similar problems in 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."
Understanding the Warm Home Discount
The Warm Home Discount is a government-backed scheme designed to help vulnerable households with their energy costs. The £150 rebate is applied directly to electricity accounts rather than paid into bank accounts, though prepayment meter customers typically receive top-up vouchers.
Eligibility Criteria
Currently, customers qualify for the Warm Home Discount if they receive:
- The Guarantee Credit element of Pension Credit
- Means-tested benefits (requiring manual application through energy suppliers)
In England and Wales, eligible customers receive the discount automatically, while in Scotland, automatic payments only apply to those receiving Guarantee Credit. Northern Ireland does not operate a Warm Home Discount scheme.
This compensation announcement comes at a time when energy bills remain significantly higher than historical averages, making timely support payments particularly crucial for vulnerable households managing their energy costs.
