Ovo Compensates Vulnerable Customers Lacking Support
Ovo Energy is set to compensate over 11,000 customers, primarily those deemed vulnerable, for delays in settled electricity bill discounts. The company, which ranks as the fourth largest energy supplier in the UK, failed to issue warm home discount payments for over 19 months. As a result, energy regulator Ofgem mandated Ovo to pay a total of £2.7 million in redress.
Details of the Compensation
The compensation package totals £2,765,200. This includes individual payments of at least £150 to each of the 11,646 customers affected. Additionally, 4,066 customers designated as medically vulnerable will receive an extra £150. Furthermore, customers who faced financial difficulties that caused their prepayment meters to run out between March 31 and May 31, 2024, will receive £100 for each occurrence.
Who is Affected?
- Overall impacted customers: 11,646
- Customers classed as vulnerable: 7,726
- Additional vulnerable compensation recipients: 4,066
Of these, 7,726 customers are categorized as vulnerable energy consumers. Ofgem has assured that these individuals have already been contacted and will receive compensation automatically, requiring no further action on their part.
Reasons for the Delay
Ovo Energy missed the deadline for the warm home discount payments that were due by March 31, 2024. Customers did not receive their rebates until November 2025. Ofgem emphasized that this delay affected some of the UK’s most vulnerable customers during the harsh winter months.
What is the Warm Home Discount?
The warm home discount is designed to assist low-income and vulnerable households with their electricity bills during winter. This amount is applied directly to their bills to provide necessary financial support.
Ovo’s Response
In response to the situation, an Ovo spokesperson expressed regret for the delays. The company has taken steps to collaborate with Ofgem to identify the issues and implement measures to avoid future occurrences. They acknowledged failing to meet their service standards and confirmed that all affected customers have been compensated.
