In a blow to the energy supplier Ovo, the industry regulator Ofgem has imposed a £2.7 million penalty on the company for failing to deliver government energy bill support payments to thousands of vulnerable customers in a timely manner.
The Warm Home Discount (WHD) scheme, which provides a £150 rebate on electricity bills for low-income households, was nearly two years late in reaching almost 12,000 of Ovo’s customers. This delay meant that some of the UK’s most vulnerable households were left without critical financial assistance during the coldest winter months, when average energy bills were approaching £2,000 per year.
Among those affected were over 7,700 customers on Ovo’s priority services register, including 4,000 who were medically vulnerable. Ofgem’s director Neil Lawrence condemned the failure, stating that “Delays of this magnitude can cause real harm, particularly for those experiencing fuel poverty who also have medical needs.”
The regulator acknowledged that Ovo has taken “positive steps” since the breach, but emphasised that all suppliers must have robust processes in place to ensure customers receive the support they are entitled to. As part of the penalty, Ovo will pay £150 to each affected customer, with an additional £150 for medically vulnerable individuals, as well as £100 for any instances where customers were unable to top up their energy meters due to the delayed payments.
This latest setback comes as Ovo, founded by Conservative donor Stephen Fitzpatrick, has struggled to raise fresh funds from investors to meet the regulator’s tougher financial standards. The company’s failure to deliver the government’s energy bill support scheme on time is the latest in a series of challenges the supplier has faced in recent years.
Ofgem has made it clear that it will continue to intervene and take strong action when energy companies fail to meet their obligations to vulnerable customers. As the cost-of-living crisis continues to squeeze household budgets, the timely delivery of such vital financial support schemes has never been more crucial.
