Warm Home Discount

The Warm Home Discount (WHD) scheme came into operation on 1 April 2011 and requires domestic energy suppliers to provide approximately £1.13 billion of direct and indirect support arrangements to fuel poor customers over four years.   

The Department of Energy and Climate Change (DECC) is responsible for WHD policy and legislation. Our role is to administer certain elements of the scheme.

Further detail about the scheme can be found in our guidance: Warm Home Discount: Guidance for Licensed Electricity Suppliers and Licensed Gas Suppliers.

Overview of the WHD scheme

The WHD scheme has been divided into four different elements: the Core Group, the Broader Group, Legacy Spend and Industry Initiatives. DECC is coordinating the Core Group, while we take the lead in administering the remaining three elements.

Core Group

Support is targeted at the Core Group, which comprises the households of less well-off pensioners.

A data matching exercise between the Department for Work and Pensions (DWP) and suppliers, is conducted to match the details of recipients of certain elements of Pension Credit against suppliers’ customer databases. Vulnerable customers identified by this process will receive an automatic annual rebate of £140 in Scheme Year 4, which has risen from £120 at the beginning of the scheme. This part of the scheme is coordinated by DECC.

Broader Group

In addition to the Core Group, suppliers are required to provide an annual rebate to a wider group of customers who are fuel poor or in a group at risk of fuel poverty. Eligibility for these customers is set by suppliers themselves, based on the framework set by the Warm Home Discount Regulations 2011.

Legacy Spending

In Scheme Years 1, 2, and 3, suppliers could offer discounted/social tariffs or rebates to vulnerable customers, similar to the Voluntary Agreement which existed prior to the Warm Home Discount scheme.  For Scheme Year 4, the Legacy Spend is no longer included in the scheme, with support to be provided through the Broader Group and Industry Initiatives.

Industry Initiatives

The Industry Initiative element enables suppliers to provide assistance, beyond direct financial support, to customers in fuel poverty or at risk of fuel poverty.

Questions on the scheme as a whole, and specifically on the Core Group, should be directed to DECC:

Email: correspondence@decc.gsi.gov.uk

Telephone:  0300 060 4000

Alternatively, information can be found on the DECC pages of the Government website.

Questions on how the Broader Group, Legacy Spend and Industry Initiative elements operate can be directed to our WHD Operational Team at WHD@ofgem.gov.uk

Supporting documents

Warm Home Discount: Guidance for Licensed Electricity Suppliers and Licensed Gas Suppliers

This PDF provides guidance on:

  • how we perform our functions and duties  under the WHD scheme

  • what licensed gas and electricity suppliers need to do to comply

  • how we interpret the scheme’s provisions.

Warm Home Discount Annual Report Scheme Year 3

This PDF document is the Ofgem Annual Report on the third year (April 2013-March 2014) of the Warm Home Discount (WHD) scheme.

 

Publications and updates

  • Published: 30th Mar 2015
  • Guidance
  • 2 Associated documents
On 12 January 2015 the government introduced The Warm Home Discount (Miscellaneous Amendments) Regulations 2015, which subsequently came into force on 11 March 2015.

  • Published: 26th Jan 2015
  • Closed: 23rd Feb 2015
  • Consultations & responses
  • 1 Associated documents
This document is a draft for comment on areas of WHD where we will be exercising some degree of discretion in our administration, or the Regulations have changed and we are proposing changes to our existing processes to reflect this.

  • Published: 12th Nov 2014
  • Consultations & responses
  • 1 Associated documents
This letter and its associated annex comprise Ofgem’s consultation response to “Warm Home Discount: extension to 2015/16”.

  • Published: 5th Nov 2014
  • Reports & plans
  • 1 Associated documents
Report produced by independent research agency OPM for Ofgem on the impact of some of the indirect support the WHD provides and if and how energy advice services can benefit vulnerable consumers.

  • Published: 5th Nov 2014
  • News
  • 0 Associated documents
New research finds energy advice provided through the Warm Home Discount is delivering warmer homes, better finances and peace of mind for vulnerable consumers.

  • Published: 31st Oct 2014
  • News
  • 0 Associated documents
Report details how much suppliers have provided in rebates.

  • Published: 2nd Oct 2014
  • Consultations & responses
  • 1 Associated documents
This letter is our response to the request for information on the uptake of the schemes by park home residents, and details some of the challenges they face in accessing the schemes. In particular, the focus of our response is on questions 25 and 26.

  • Published: 29th Jul 2014
  • Guidance
  • 6 Associated documents
This document provides guidance on how Ofgem will perform its duties under the Warm Home Discount (WHD) scheme,

  • Published: 8th Apr 2014
  • Guidance
  • 2 Associated documents
Purpose This document describes our proposed amendments to the existing guidance to suppliers the ‘Warm Home Discount: Guidance for Licensed Electricity Suppliers and Licensed Gas Suppliers (version 2)’.  Proposed Changes

  • Published: 15th Mar 2013
  • Decisions
  • 3 Associated documents
Provides domestic electricity suppliers with guidance on the Warm Home Discount Scheme. Detailing the obligations and processes for the implementation of the scheme.

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