Warm Home Discount annual report: Scheme Year 3

Reports, plans and updates

The Warm Home Discount (WHD) scheme came into effect in April 2011 and requires domestic energy suppliers to provide support to fuel poor customers.

Compulsory Scheme Electricity Suppliers who meet the criteria set out in the WHD Regulations 2011 are obligated to provide support to eligible customers. This is mainly through rebates towards the energy costs of customers who are fuel poor or at risk of fuel poverty over the period of the scheme.

Ofgem’s role is to administer the WHD scheme and monitor suppliers’ compliance with their obligations. Following each scheme year we are required to report to the Secretary of State on the implementation and delivery of the WHD scheme, and this is Ofgem’s third annual report, covering the period from April 2013 to March 2014.

We also publish the document for wider stakeholders including gas and electricity suppliers and consumer groups, particularly those representing consumers vulnerable to fuel poverty.

Overall, the report shows that suppliers have been successful in meeting, and going beyond, their obligations in the third year of the scheme;

  • 1.8 million customers received a rebate of £135 to help with energy costs in the winter of 2013, and this is due to rise to £140 in Scheme Year 4

  • Suppliers provided over 250,000 rebates more than their minimum requirement for the year

  • A further half a million customers received other types of support

  • In total, customers received eligible support worth £291m in the scheme year, £24m more than the minimum obligation

In addition, First Utility and Utility Warehouse joined the WHD scheme in the third year, resulting in the benefits of the scheme being available to the customers of more suppliers. Ofgem worked closely with each new entrant to help ensure they could meet their obligations under the scheme.