Ovo Energy to pay £2.7m in compensation for Warm Home discount delays

(Sharecast News) - Energy provider Ovo Energy will pay over £2.7m in compensation after it failed to provide Warm Home Discount (WHD) rebates to more than 11,000 customers on time. Regulator Ofgem said on Thursday that Ovo failed to meet the statutory deadline for payments, with customers not receiving their rebate until November 2025, more than 19 months late.

"The delay meant that some of the most vulnerable customers were left without the support they were entitled to during the coldest winter months," Ofgem said.

Of those affected, just over 7,700 were on the Priority Services Register (PSR) - classed as vulnerable energy consumers - and 4,066 of those on the PSR were medically vulnerable.

Ofgem said 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 31 March and end of May 2024.

Neil Lawrence, 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."