OVO to pay £2.7 million in redress for Warm Home Discount payment failures

OVO will pay over £2.7 million in redress after failing to provide Warm Home Discount (WHD) rebates to almost 11,646 customers by the statutory deadline of 31 March 2024.

These customers did not receive 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.

Of those affected, 7,726 were on the Priority Services Register (PSR) meaning they are classed as vulnerable energy consumers, and 4,066 of those on the PSR were medically vulnerable.

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 31 May 2024. All affected customers have been contacted by OVO and they do not need to take any further action, they will be compensated automatically.

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.”

Ofgem will continue to monitor all suppliers’ compliance with their obligations under the Warm Home Discount scheme and expects suppliers to make timely payments when consumers need them most, over the winter months.

Notes to editors

• Ofgem administers the WHD scheme on behalf of government. The Warm Home Discount scheme supports energy consumers on low incomes and who are vulnerable to cold-related illness or living wholly or mainly in fuel poverty. To achieve this, energy bill rebates are targeted at low-income pensioners and other low-income groups.
• The Priority Services Register (PSR) is a free service that offers extra support to energy consumers who may have additional communication, access, safety or wellbeing needs. Eligible customers can receive help such as advance notice of planned power cuts, priority support in an emergency, accessible formats for communications, and the option to nominate a trusted contact. More information on the PSR, including how to join, is available on Ofgem’s website.
• OVO missed the 31 March 2024 deadline to make the Warm Home Discount payment to customers due to an internal error. OVO self-reported the error to Ofgem last year. A detailed investigation followed, and OVO has now updated its systems to rectify the error. This relates to regulation 9 (5) and 10 (5) of the Warm Home Discount Regulations.
• Last year, suppliers spent a combined £578.7 million supporting low-income households through the Warm Home Discount.
• If suppliers fall short in their required payments, Ofgem works to ensure they correct their mistakes and requires assurances that the issues which led to their shortcomings have been resolved. If a supplier’s failings are more serious, the supplier is likely to face compliance or enforcement action.
• View Ofgem’s latest Supplier Performance Report (14 January 2026): Supplier Performance Report: January to June 2025.