Energy provider Ovo has been ordered to pay £2.77m in compensation by the energy regulator Ofgem after nearly 12,000 Ovo customers faced delays in receiving their Warm Home Discount Scheme payment. Affected customers will receive at least £150 and compensation will be paid directly to the qualifying households, which include some of Ovo's most vulnerable customers.
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."
He continued: "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.
"Failures of this kind are unacceptable, and we will continue to intervene where necessary to ensure customers receive the support they are entitled to."
Why is Ovo paying customers compensation?
Ofgem, the energy regulator, is forcing Ovo to pay the compensation after finding it to be at fault. The regulator found that 11,646 Ovo customers received their Warm Home Discount Scheme support late. The payment was due by 31st March 2024, but only arrived in November 2025, more than 19 months past the deadline. 7,726 of the customers affected were registered for priority services, which classifies them as 'vulnerable', with 4,066 of those 'medically vulnerable'.
With such a large number of its most in-need customers left without the support they were entitled to over the winter of 2024/25, Ofgem has stepped in to push Ovo to pay out compensation.
Ovo blamed the delay on an internal system error, though Ofgem stated that the firm had fallen "significantly short of its obligations".
Who can get compensation?
All Ovo customers who were due a payment under the Warm Home Discount Scheme for the period of October 2023 to March 2024, which Ofgem numbers at 11,646, will be paid compensation directly.
Each household affected by the delay will receive £150, with those in the medically vulnerable category receiving an additional £150. There is also a further £100 payment for customers who 'self-disconnected'. This is a somewhat contradictory industry term that refers to people on prepayment meters who are unable to afford a top-up and so have their energy supply turned off. Of course, in this case they did not literally self-disconnect, rather their supply was cut off because they were not provided with the Warm Home Discount Scheme payment they were due.
What is the Warm Home Discount Scheme?
The Warm Home Discount Scheme is a government initiative that offers households on a low income, or those that receive certain benefits, a one-off £150 discount on their electricity bill between October and March. The scheme is operated through the participating energy suppliers, with the discount applied to bills rather than being paid directly to the customer. Those on a pre-paid meter should be issued with a top-up voucher issued by post, email or text, depending on the supplier.
The Warm Home Discount Scheme does not affect other schemes such as the Cold Weather Payment or Winter Fuel Payment.
There are two levels of eligibility for the Warm Home Discount Scheme: one level if you receive the Guarantee Credit element of Pension Credit, and another if you are on a low income and receive certain qualifying benefits.
Read our article 'Warm Home Discount Scheme – how to get £150 off your energy bill' to learn more about the scheme.
How to save money on your energy bills
While you cannot account for energy provider failures, you can still take steps to manage your overall energy costs.
- Check your tariff - With prices fluctuating, it is worth checking if a fixed-rate tariff could offer you stability or savings compared to the energy price cap.
- Energy efficiency - Simple changes, such as improving insulation or adjusting your boiler flow temperature, can reduce the amount of energy you use, lowering the variable element of your bill. We explain more in our article 'What to do if you are struggling with paying your energy bill'.
- Monitor grants - Keep an eye out for government schemes designed to help with energy efficiency improvements or cold weather, especially if you are on a low income. As a start, you can check your eligibility for the Warm Home Discount scheme on the government's website.
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