The regulator found that, in the scheme year covering 2023-2024, Utilita - which supplies 800,000 customers - failed to pass on the mandatory discount to more than 4,000 customers within the required timeframe because of an internal error in processing payments.
The Warm Home Discount scheme - which is administered by Ofgem on behalf of government - supports energy consumers on low incomes by offering an automatic payment of £150 to eligible customers each year.
In recognition of the impact delayed Warm Home Discount payments could have on its customers, Utilita has agreed to pay £247,000 of compensation to those affected, who will receive further payments of up to £150 each. This is in addition to £30,000 of compensation Utilita paid to affected customers shortly after the error was identified.
Ofgem has also published its Supplier Performance Report, which assesses supplier performance in the delivery of a number of government schemes including the Warm Home Discount and Feed-in Tariffs schemes.
The report confirms that in the same 2023-2024 scheme year, the regulator secured nearly £762,000 in redress payments from suppliers for non-compliance with the Warm Home Discount scheme. This includes direct compensation to customers and payments into Ofgem’s Voluntary Redress Fund which funds projects and schemes to support energy consumers, particularly those in vulnerable situations.
Utilita is completing an independent review of their Warm Home Discount processes and Ofgem will continue to monitor all suppliers’ compliance with their obligations under the Warm Home Discount scheme.