London, 22 January 2026, 18:05 GMT
- Ofgem has directed OVO Energy to pay £2,765,200 in compensation following delays in Warm Home Discount rebate payments
- In November 2025, 11,646 customers finally received the £150 rebate—over 19 months past the March 31, 2024 deadline
- Customers who are medically vulnerable will get an extra £150, plus extra payments for certain prepayment meter users
Ofgem hit OVO Energy with a £2,765,200 compensation order on Thursday for missing the deadline on Warm Home Discount rebates. The £150 credits weren’t applied to 11,646 qualifying customers until November 2025—over 19 months late from the March 31, 2024 cutoff.
The Warm Home Discount (WHD) offers a statutory rebate on winter electricity bills aimed at low-income households and those at risk from cold-related illnesses. Administered by Ofgem for the government, Ofgem warned that such lengthy delays risk leaving vulnerable people without crucial support during the coldest months.
OVO ranks as Britain’s fourth-largest gas and electricity supplier. It claims to serve over 4 million customers through its retail brands, playing a significant role in providing bill support that depends on suppliers instead of direct government aid.
Ofgem reported that 7,726 customers impacted were listed on the Priority Services Register (PSR), a free service identifying those who might require additional help from their energy provider. Additionally, 4,066 people were classified as medically vulnerable.
The regulator announced that all affected customers will get £150, with an extra £150 for those medically vulnerable. Customers will also receive £100 for each “self-disconnection” episode between March 31 and May 31, 2024—when their prepayment meter runs out due to no funds to top up. https://news.sky.com/story/ovo-to-compensa…
Neil Lawrence, director of delivery and schemes at Ofgem, described the discount as “a vital source of support” and warned the watchdog is “prepared to take strong action” against suppliers who miss their deadlines.
OVO said it had worked closely with Ofgem to pinpoint the issues and apologised to customers. A spokesperson described the company as “very sorry” and said it had introduced measures to ensure the problem “does not happen again.” They added that customers affected have now received compensation. https://www.theguardian.com/business/2026/…
Ofgem said OVO missed the deadline due to an internal error and that the company reported the issue themselves last year. The regulator confirmed customers have been contacted and don’t need to take any action to get the payments.
The WHD is provided by participating suppliers, with the government naming companies like British Gas, EDF, and Octopus Energy as part of the scheme.
Ofgem has previously issued redress orders. Back in June 2025, it announced that Utilita would hand over around £277,000 after missing the March 31 deadline for payments to more than 4,000 customers.
The case highlights a real vulnerability in support schemes that rely heavily on back-office systems and data sharing between companies and the government. Ofgem said it will continue to oversee supplier compliance and expects rebates to be delivered on schedule “when consumers need them most” this winter.
