Energy firm Ovo has been ordered to pay £2.77 million in compensation after nearly 12,000 vulnerable customers faced significant delays in receiving their Warm Home Discount support, regulator Ofgem has announced.

Ofgem revealed that 11,646 customers finally received their rebate in November 2025, more than 19 months after the original deadline of March 31 2024.

The delay was attributed to an internal system error at Ovo, leaving vulnerable households without crucial energy assistance during the coldest winter months.

Among those affected, 7,726 were registered on the priority services list, indicating their vulnerable status, with 4,066 of these specifically classified as medically vulnerable. Ofgem stated that Ovo had fallen "significantly short of its obligations" in delivering this vital support.

The supplier will directly compensate affected households with the £2.77 million.

Ovo has been ordered to pay millions in compensation to its customers (Alamy/PA)

This includes £150 for all impacted customers, an additional £150 for those deemed medically vulnerable, and £100 for instances of "self-disconnection" between March 31 and May 31 2024.

Self-disconnection refers to cases where a prepayment meter customer, unable to afford a top-up, had their energy supply cut off.

The Warm Home Discount scheme is designed to assist energy consumers on low incomes, particularly those susceptible to cold-related illnesses or experiencing fuel poverty, including low-income pensioners and other vulnerable groups.

Neil Lawrence, director of delivery and schemes at Ofgem, underscored the importance of the programme.

He 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."

Mr Lawrence added: "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."