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