Thousands of vulnerable households across the United Kingdom are set to receive compensation payments of up to £400 after energy supplier Ovo was found to have failed in its obligations to deliver crucial government support on time.
Regulator Takes Strong Action Against Supplier Failure
The energy regulator Ofgem has ordered Ovo Energy to pay a substantial £2.77 million in compensation following an investigation that revealed nearly 12,000 customers suffered unacceptable delays in receiving their Warm Home Discount payments from the Department for Work and Pensions.
According to Ofgem's findings, a staggering 11,646 customers received their warm home discount rebate more than 19 months late, with payments finally arriving in November 2025. This significant delay stemmed from Ovo missing the original deadline of March 31, 2024, due to what the company described as an internal system error.
Vulnerable Customers Left Without Winter Support
The consequences of this administrative failure were particularly severe for those most in need of support. The delayed payments meant vulnerable customers went without vital energy bill assistance during some of the coldest winter months, when heating costs typically peak.
Ofgem's investigation revealed that among the affected customers:
- 7,726 were registered on the priority services register, identifying them as vulnerable customers
- 4,066 of these were specifically classed as medically vulnerable individuals
- Many experienced what's known as "self-disconnection" between March 31 and May 31, 2024
Neil Lawrence, director of delivery and schemes at Ofgem, emphasised the seriousness of the situation, stating: "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."
Compensation Structure for Affected Households
The £2.77 million compensation package will be distributed directly to affected households through a structured payment system designed to reflect the varying levels of hardship experienced.
The compensation breakdown includes:
- £150 for all impacted customers as a base compensation payment
- An additional £150 for customers classed as medically vulnerable
- £100 for cases of self-disconnection where prepayment meter customers couldn't afford to top up their meters
This means some of the most severely affected households could receive up to £400 in total compensation, providing some financial redress for the hardship they endured.
Regulatory Response and Industry Accountability
Ofgem has made it clear that such failures are unacceptable in an energy market where suppliers have crucial responsibilities toward vulnerable customers. Lawrence further stated: "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."
An Ovo spokesperson responded to the ruling, saying: "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."
Consumer Advocacy Response
Emily Seymour, energy editor at the consumer group Which?, welcomed Ofgem's intervention while highlighting the serious implications of such delays. She commented: "It's good to see Ofgem taking action after Ovo let down customers who could least afford to wait for delayed energy bill support. It's right that those affected are being compensated for this appalling oversight."
Seymour emphasised the critical importance of timely support, noting: "Fuel poverty can be extremely dangerous for vulnerable customers including older people or those with health issues, so it's absolutely critical that they receive the support they are due."
The case serves as a significant reminder of the regulatory framework governing energy suppliers and their obligations toward vulnerable customers, particularly during periods of economic pressure and rising energy costs.
