Energy Regulator Orders OVO to Compensate Customers After Payment Delays
Energy supplier OVO has been instructed to pay substantial compensation to thousands of customers after failing to deliver crucial Warm Home Discount rebates within the required timeframe. The company, which operates alongside major competitors including British Gas, Scottish Power, EDF Energy, EON Next and Octopus Energy, will distribute over £2.7 million in compensation payments following regulatory intervention.
Significant Delays Affecting Vulnerable Households
Regulator Ofgem revealed that OVO failed to provide Department for Work and Pensions Warm Home Discount rebates to 11,646 customers by the statutory deadline of 31st March 2024. Affected households did not receive their entitled payments until November 2025 – creating a delay of more than 19 months that spanned multiple winter periods.
Ofgem stated clearly that delays of this magnitude can cause real harm, particularly during the coldest months when energy costs are highest. The regulator emphasised that the situation left some of the most vulnerable customers without essential support they were legally entitled to receive.
Compensation Structure and Impacted Customers
Customers affected by the payment delays will receive compensation of up to £400 each, with the total compensation package exceeding £2.7 million. Among those impacted, 7,726 were registered on the Priority Services Register, classifying them as vulnerable energy consumers. Within this group, 4,066 were identified as medically vulnerable individuals who rely particularly on consistent energy support.
Neil Lawrence, Director of Delivery and Schemes at Ofgem, commented: "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."
Regulatory Response and Supplier Responsibilities
Ofgem has made clear that energy suppliers must maintain robust processes to ensure timely delivery of essential payments. The regulator stated that where companies fail to meet their obligations, intervention will occur with potential for strong enforcement action.
Lawrence 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. On this occasion, OVO fell significantly short of its obligations, though we recognise the positive steps the company has taken."
The regulator emphasised that failures of this nature are completely unacceptable within the energy sector. Ofgem has committed to continuing its monitoring and intervention where necessary to ensure all customers receive the support and compensation they are legally entitled to under energy regulations and consumer protection frameworks.
