In a significant ruling, energy regulator Ofgem has ordered Ovo Energy to pay £2.77 million in compensation to nearly 12,000 of its customers who faced substantial delays in receiving their Warm Home Discount support. The delay, attributed to an internal system error at Ovo, left vulnerable households without crucial energy assistance during the coldest winter months.
Ofgem revealed that 11,646 customers finally received their rebate in November 2025, more than 19 months after the original deadline of March 31, 2024. Among those affected, 7,726 were registered on the priority services list, indicating their vulnerable status, with 4,066 specifically classified as medically vulnerable. Ofgem stated that Ovo had fallen “significantly short of its obligations” in delivering this vital support.
The compensation package includes £150 for all impacted customers, an additional £150 for those deemed medically vulnerable, and £100 for instances of “self-disconnection” between March 31 and May 31, 2024. Self-disconnection refers to cases where a prepayment meter customer, unable to afford a top-up, had their energy supply cut off.
Neil Lawrence, director of delivery and schemes at Ofgem, underscored the importance of the Warm Home Discount programme, which is designed to assist energy consumers on low incomes, particularly those susceptible to cold-related illnesses or experiencing fuel poverty, including low-income pensioners and other vulnerable groups.
“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,” said Lawrence.
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. 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 ruling serves as a stark reminder of the critical role energy assistance programmes play in supporting vulnerable households, and the need for energy suppliers to prioritize the timely delivery of such vital support.
