The UK energy regulator Ofgem has confirmed that Ovo Energy will pay £2.77 million in compensation after significant delays in delivering Warm Home Discount payments to nearly 12,000 of its customers. The failure left many without critical support during winter, with some of the most vulnerable forced to go without heating at the coldest time of year.
The Warm Home Discount scheme, backed by the government, is designed to help low-income and medically vulnerable individuals afford heating through the winter months. The delayed payments, which should have been issued by March 2024, were not received until November 2025, affecting customers when energy support was needed most.
Delays Impacted Medically Vulnerable Customers during Coldest Months
Ovo’s delay in issuing the £150 rebate affected 11,646 customers, according to Ofgem. Among these, 7,726 were listed on the Priority Services Register and 4,066 were medically vulnerable. The regulator stated the firm “fell significantly short of its obligations,” particularly given the severity of the delay (more than 19 months) and the risks posed to those living in fuel poverty.
The delay stemmed from what Ovo described as an internal system error, which it self-reported to Ofgem. In response, the company agreed to compensate affected households with a tiered payment scheme. This includes £150 for all impacted customers, an additional £150 for medically vulnerable individuals, and a further £100 for those who experienced so-called self-disconnection, when a prepayment meter runs out and the customer is unable to top up, between March and May 2024.
According to The Standard, the company acknowledged that it had failed to meet “the high standards of service we set for ourselves” and stated that measures have since been taken to prevent the issue from recurring. Ofgem has said it recognises the “positive steps” taken by Ovo since the incident, though the compensation order was deemed necessary given the scale and consequences of the failure.
Ofgem and Consumer Groups Condemn Supplier’s Failure
Ofgem’s Director of Delivery and Schemes, Neil Lawrence, described the delays as unacceptable. He stated that “the Warm Home Discount is a vital source of support for vulnerable energy consumers,” and warned that “delays of this magnitude can cause real harm, particularly for those experiencing fuel poverty who also have medical needs.” He added that suppliers are expected to act swiftly and accurately when administering support schemes, and that failures such as this would prompt regulatory intervention.
Consumer advocacy group Which? also commented on the case. Energy editor Emily Seymour told The Standard it was “good to see Ofgem taking action after Ovo let down customers who could least afford to wait for delayed energy bill support.” She added that fuel poverty can be “extremely dangerous” for older people and those with health conditions, and stressed the importance of reliable support during winter.
The Warm Home Discount scheme is aimed at low-income pensioners and households vulnerable to cold-related illness. Energy suppliers spent a total of £578.7 million through the scheme last year, providing vital support across the country. Though Ovo has responded publicly and changed its internal processes, the fine highlights how errors in administration can have tangible and serious consequences for those most in need.
