Thousands of Ovo Energy customers are set to receive compensation after the supplier failed to deliver Warm Home Discount (WHD) payments on time to vulnerable households.
Regulator Ofgem has ordered Ovo to pay £2.77 million after nearly 12,000 customers were left without vital support during the winter due to an internal error.
The compensation package means some affected customers could receive up to £400, depending on their circumstances.
What is the Warm Home Discount?
The Warm Home Discount is a government-backed scheme designed to help people on low incomes or who are vulnerable to cold-related illness with their energy bills.
It provides an annual rebate, currently worth £150, which is automatically applied to eligible customers’ electricity bills.
The discount is not paid in cash, but credited directly to a customer’s energy account, usually between October and March, to help cover higher heating costs during winter.
Energy suppliers across the UK deliver the scheme, with hundreds of millions of pounds paid out each year to support households in fuel poverty.
The warm home discount is designed to help people on low incomes or who are vulnerable to cold-related illness with their energy bills.
(Vladyslav Stepanov)
Am I entitled to the Warm Home Discount?
Eligibility for the WHD depends on your circumstances rather than your energy usage. In England and Wales, those eligible are:
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You or your partner is getting the guarantee credit element of pension credit
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People receiving certain means-tested benefits – including housing benefit, income-based jobseeker’s allowance and universal credit
In Scotland, you qualify if you either:
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Get the guarantee credit element of pension credit
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Are on a low income in Scotland and meet your energy supplier’s criteria for the scheme
Most eligible customers receive the rebate automatically, without needing to apply, and are usually contacted by energy suppliers.
How do I know if I am entitled to a rebate?
The current compensation relates specifically to customers who should have received their WHD by 31 March 2024 but did not.
Due to an internal systems error, Ovo failed to make payments on time, with 11,646 customers only receiving their rebate in November 2025 – more than 19 months late.
Of those affected, 7,726 were on the Priority Services Register, with another 4,066 classed as medically vulnerable.
Some Ovo Energy customers could get up to £400 in compensation.
(MPSigns)
Under Ofgem’s ruling, Ovo must pay compensation directly to impacted households. This includes:
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£150 for all affected customers
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An additional £150 for customers who were medically vulnerable
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A further £100 for customers who self-disconnected between 31 March and 31 May 2024 because they could not afford to top up a prepayment meter
This means some customers could receive up to £400 in total.
Ovo has said all affected customers have now been identified and compensated automatically, so most people will not need to make a claim.
Anyone who believes they were eligible for the WHD but did not receive it, or who thinks they may have been affected by the delay, is advised to contact Ovo directly.
