Energy firm Utilita to pay £277,000 after failing to give discounts on time
Energy company Utilita will pay around £277,000 in compensation after failing to pay its Warm Home Discount payments on time, says energy regulator Ofgem.
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 the 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.
Utilita missed the 31 March 2024 deadline to make the Warm Home Discount payment to customers by 12 days due to an internal error. Utilita self-reported the error to Ofgem last year. A detailed investigation followed, and Utilita has now updated its systems to rectify the error.
All affected customers have been contacted by Utilita and don’t need to do anything. They will be compensated automatically, Ofgem said.
“The Warm Home Discount is a lifeline for vulnerable energy consumers on low incomes. Even a short delay in making these payments can cause harm to vulnerable customers, so it’s vital that suppliers make these payments on time and without hassle,” said Cathryn Scott (Regulatory Director of Market Oversight and Enforcement at Ofgem).
“Unfortunately, on this occasion, Utilita fell short of our standards by failing to pay some of their customers in a timely manner. Utilita has conducted an audit of their Warm Home Discount processes to make sure this doesn’t happen again,” Scott said.
“It’s our duty to protect consumers. And today’s outcome, as well as the findings set out in our Supplier Performance Report, serve as a reminder to all suppliers that failures to make scheme payments on time are unacceptable, and that we can and will take enforcement action to put things right for customers.”
