Energy giant OVO will pay over £2.7 million to customers after failing to provide Warm Home Discount (WHD) rebates to thousands before a key deadline. People impacted could get as much as £400.

In an announcement today regulator Ofgem said some of the most vulnerable people in the UK were left without support to pay for vital heating after the money was paid 19 months too late.

Ofgem said a total of 11,646 customers were not handed the money by the statutory deadline of 31 March 2024. It explained they did not receive their rebate until November 2025 – more than 19 months late.

Ofgem said: “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 Ofgem said.

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.

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.

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.

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.

An OVO spokesperson said: “We’re very sorry that some customers did not receive their Warm Home Discount payments on time. We have worked closely with Ofgem to understand what went wrong and to put measures in place to ensure it does not happen again. 

“We did not meet the high standards of service we set for ourselves, and all affected customers have now been compensated.”