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Major energy firm to pay £2.7m to customers for Warm Home Discount payment failures

Energy regulator Ofgem said the delay in payments left some of the most vulnerable customers without the support they were entitled to during the coldest winter months.

Cost of energy. Fuel poverty.

The delay left some of the most vulnerable customers without support (Image: Getty)

Energy giant OVO will pay over £2.7 million in redress after failing to provide Warm Home Discount (WHD) rebates to around 11,646 customers by the statutory deadline of March 31, 2024.

These customers did not receive their rebate until November 2025 – more than 19 months late. Energy regulator Ofgem said the delay left some of the most vulnerable customers without the support they were entitled to during the coldest winter months. Of those affected, 7,726 were on the Priority Services Register (PSR), meaning they are classed as vulnerable energy consumers, and 4,066 of those on the PSR were medically vulnerable.

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OVO will pay a total of £2,765,200 in compensation directly to affected customers (Image: Getty)

OVO will pay a total of £2,765,200 in compensation directly to affected customers. This includes £150 for all impacted customers, an additional £150 for medically vulnerable customers, and £100 for each instance of self-disconnection between March 31 and May 31, 2024.

All affected customers have been contacted by OVO, and they do not need to take any further action as they will be compensated automatically.

Neil Lawrence, the director of delivery and schemes at Ofgem, said: “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.”

Ofgem says it will continue to monitor all suppliers’ compliance with their obligations under the Warm Home Discount scheme and expects suppliers to make timely payments when consumers need them most, over the winter months.

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