Major UK energy provider ordered to pay £150 compensation to thousands of customers
A UK energy firm will pay thousands of customers £150 in compensation after it failed to pass on a mandatory discount.
Utilita must pay a total of £277,000 back to billpayers after it did not make Warm Home Discount payments on time, the regulator Ofgem said.
The payments should have been made between 2023 and 2024, however, 4,000 customers did not receive them because of an 'internal error in processing payments'.
Utilita paid £30,000 in compensation to customers shortly after the error was first identified. However, it has agreed with Ofgem to pay a further £247,000 to affected customers.
Formed in 2003, Utilita has around 800,000 customers in the UK and it specialises in Pay As You Go (PAYG) smart energy meters. The firm started installing smart prepayment meters in 2008, with 90 per cent of its customers now using one.
The Warm Home Discount scheme is administered by Ofgem on behalf of the government and gives people on low incomes an automatic payment of £150 each year, which is applied by their supplier.
There are two ways to qualify. The first is for the bill payer to be in receipt of the Guarantee Element of Pension Credit. Otherwise, they must receive a qualifying benefit (which includes Universal Credit) alongside having 'high energy costs,' which is assessed by the government.
Ofgem's latest supplier performance report shines a light on Warm Home Discount non-compliance, revealing that seven other suppliers also failed to pass them on in 2023 and 2024.
The combined compensation payments from these companies was £484,960. This figure includes compensation for affected customers as well as payments to Ofgem's voluntary redress fund or to fuel poverty charities.
These were: Rebel Energy (£11,583.14), Good Energy (£3,394.34) Foxglove Energy (£28,805.93), Green Energy (UK) (£18,556.97), Tomato Energy (£40,183.38), Utility Warehouse (£380,928.33) and Tru Energy (£1,508.17).
Ofgem has confirmed that these payments have already been made.
Cathryn Scott, Regulatory Director of Market Oversight and Enforcement at 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.
'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.
'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.'
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Sky News
2 hours ago
- Sky News
US warplanes transit through UK as Trump considers striking Iran
Flight tracking data shows extensive movement of US military aircraft towards the Middle East in recent days, including via the UK. Fifty-two US military planes were spotted flying over the eastern Mediterranean towards the Middle East between Monday and Thursday. That includes at least 25 that passed through Chania airport, on the Greek island of Crete - an eight-fold increase in the rate of arrivals compared to the first half of June. The movement of military equipment comes as the US considers whether to assist Israel in its conflict with Iran. Of the 52 planes spotted over the eastern Mediterranean, 32 are used for transporting troops or cargo, 18 are used for mid-air refuelling and two are reconnaissance planes. Forbes McKenzie, founder of McKenzie Intelligence, says that this indicates "the build-up of warfighting capability, which was not [in the region] before". Sky's data does not include fighter jets, which typically fly without publicly revealing their location. An air traffic control recording from Wednesday suggests that F-22 Raptors are among the planes being sent across the Atlantic, while 12 F-35 fighter jets were photographed travelling from the UK to the Middle East on Wednesday. Many US military planes are passing through UK A growing number of US Air Force planes have been passing through the UK in recent days. Analysis of flight tracking data at three key air bases in the UK shows 63 US military flights landing between 16 and 19 June - more than double the rate of arrivals earlier in June. On Thursday, Sky News filmed three US military C-17A Globemaster III transport aircraft and a C-130 Hercules military cargo plane arriving at Glasgow's Prestwick Airport. Flight tracking data shows that one of the planes arrived from an air base in Jordan, having earlier travelled there from Germany. What does Israel need from US? Israeli Prime Minister Benjamin Netanyahu said on 15 March that his country's aim is to remove "two existential threats - the nuclear threat and the ballistic missile threat". Israel says that Iran is attempting to develop a nuclear bomb, though Iran says its nuclear facilities are only for civilian energy purposes. A US intelligence assessment in March concluded that Iran is not building a nuclear weapon. President Trump dismissed the assessment on Tuesday, saying: "I think they were very close to having one." Forbes McKenzie says the Americans have a "very similar inventory of weapons systems" to the Israelis, "but of course, they also have the much-talked-about GBU-57". The GBU-57 is a 30,000lb bomb - the largest non-nuclear bomb in existence. Mr McKenzie explains that it is "specifically designed to destroy targets which are very deep underground". Experts say it is the only weapon with any chance of destroying Iran's main enrichment site, which is located underneath a mountain at Fordow. Air-to-air refuelling could allow Israel to carry larger bombs Among the dozens of US aircraft that Sky News tracked over the eastern Mediterranean in recent days, more than a third (18 planes) were designed for air-to-air refuelling. "These are crucial because Israel is the best part of a thousand miles away from Iran," says Sky News military analyst Sean Bell. "Most military fighter jets would struggle to do those 2,000-mile round trips and have enough combat fuel." The ability to refuel mid-flight would also allow Israeli planes to carry heavier munitions, including bunker-buster bombs necessary to destroy the tunnels and silos where Iran stores many of its missiles. Satellite imagery captured on 15 June shows the aftermath of Israeli strikes on a missile facility near the western city of Kermanshah, which destroyed at least 12 buildings at the site. At least four tunnel entrances were also damaged in the strikes, two of which can be seen in the image below. Writing for Jane's Defence Weekly, military analyst Jeremy Binnie says it looked like the tunnels were "targeted using guided munitions coming in at angles, not destroyed from above using penetrator bombs, raising the possibility that the damage can be cleared, enabling any [missile launchers] trapped inside to deploy". "This might reflect the limited payloads that Israeli aircraft can carry to Iran," he adds. Penetrator bombs, also known as bunker-busters, are much heavier than other types of munitions and as a result require more fuel to transport. Israel does not have the latest generation of refuelling aircraft, Mr Binnie says, meaning it is likely to struggle to deploy a significant number of penetrator bombs. Israel has struck most of Iran's western missile bases Even without direct US assistance, the Israeli air force has managed to inflict significant damage on Iran's missile launch capacity. Sky News has confirmed Israeli strikes on at least five of Iran's six known missile bases in the west of the country. On Monday, the IDF said that its strategy of targeting western launch sites had forced Iran to rely on its bases in the centre of the country, such as Isfahan - around 1,500km (930 miles) from Israel. Among Iran's most advanced weapons are three types of solid-fuelled rockets fitted with highly manoeuvrable warheads: Fattah-1, Kheibar Shekan and Haj Qassam. The use of solid fuel makes these missiles easy to transport and fast to launch, while their manoeuvrable warheads make them better at evading Israeli air defences. However, none of them are capable of striking Israel from such a distance. Iran is known to possess five types of missile capable of travelling more than 1,500km, but only one of these uses solid fuel - the Sijjil-1. On 18 June, Iran claimed to have used this missile against Israel for the first time. Iran's missiles have caused significant damage Iran's missile attacks have killed at least 24 people in Israel and wounded hundreds, according to the Israeli foreign ministry. The number of air raid alerts in Israel has topped 1,000 every day since the start of hostilities, reaching a peak of 3,024 on 15 June. Iran has managed to strike some government buildings, including one in the city of Haifa on Friday. And on 13 June, in Iran's most notable targeting success so far, an Iranian missile impacted on or near the headquarters of Israel's defence ministry in Tel Aviv. Most of the Iranian strikes verified by Sky News, however, have hit civilian targets. These include residential buildings, a school and a university. On Thursday, one missile hit the Soroka Medical Center in Beersheba, southern Israel's main hospital. More than 70 people were injured, according to Israel's health ministry. Iranian foreign minister Abbas Araghchi said that Iran had struck a nearby technology park containing an IDF cyber defence training centre, and that the "blast wave caused superficial damage to a small section" of the hospital. However, the technology park is in fact 1.2km away from where the missile struck. Photos of the hospital show evidence of a direct hit, with a large section of one building's roof completely destroyed. Iran successfully struck the technology park on Friday, though its missile fell in an open area, causing damage to a nearby residential building but no casualties. Israel has killed much of Iran's military leadership It's not clear exactly how many people Israel's strikes in Iran have killed, or how many are civilians. Estimates by human rights groups of the total number of fatalities exceed 600. What is clear is that among the military personnel killed are many key figures in the Iranian armed forces, including the military's chief of staff, deputy head of intelligence and deputy head of operations. Key figures in the powerful Revolutionary Guard have also been killed, including the militia's commander-in-chief, its aerospace force commander and its air defences commander. On Thursday, Israeli Prime Minister Benjamin Netanyahu said that US assistance was not necessary for Israel to win the war. "We will achieve all our objectives and hit all of their nuclear facilities," he said. "We have the capability to do that." 3:49 Forbes McKenzie says that while Israel has secured significant victories in the war so far, "they only have so much fuel, they only have so many munitions". "The Americans have an ability to keep up the pace of operations that the Israelis have started, and they're able to do it for an indefinite period of time." Additional reporting by data journalist Joely Santa Cruz and OSINT producers Freya Gibson, Lina-Sirine Zitout and Sam Doak.
Daily Mirror
2 hours ago
- Daily Mirror
Full list of requirements to be eligible for Warm Homes Discount
6 million households are due to receive the £150 discount this winter This winter, millions more individuals will be eligible for the Warm Home Discount, a £150 reduction on their electricity bills. This is due to new eligibility criteria released this month, although the benefit is only set to start being distributed around October. Eligibility for the benefit falls into one of two categories. Previously, these were:. People receiving the Guarantee element of Pension Credit - Core Group 1. People with low income and high energy costs - Core Group 2. People in Scotland identified by their supplier as at risk of fuel poverty - Broader Group. However, the recent update has made it so that people in core group 2 no longer need to have high energy costs to qualify. Simply claiming one of the qualifying benefits will be enough to receive the discount this winter. The current full list of qualifying benefits includes: Housing Benefit. Income-related Employment and Support Allowance (ESA). Income-based Jobseeker's Allowance (JSA). Income Support. The 'Savings Credit' part of Pension Credit. Universal Credit. If you receive Child Tax Credit or Working Tax Credit, you may also be eligible, provided your household income falls below a certain threshold. To qualify, the person receiving the qualifying benefit must be named on the energy bill. The money is not paid to you like cash in hand; instead, it is applied to your bill by your electricity supplier. If you're on a prepayment meter, you might find a voucher arriving via post or email instead. Those residing in Scotland are encouraged to get in touch with their energy supplier if they think they may qualify under the core or broader groups. Official statistics suggest that over 6 million households will benefit from the scheme this year, marking an increase of 2.7 million. Among these, 900,000 are families with children and 1.8 million are homes experiencing fuel poverty. Prime Minister Keir Starmer commented: "I know families are still struggling with the cost of living, and I know the fear that comes with not being able to afford your next bill. "Providing security and peace of mind for working people is deeply personal to me as Prime Minister and foundational for the Plan for Change. "I have no doubt that, like rolling out free school meals, breakfast clubs and childcare support, extending this £150 energy bills support to millions more families will make a real difference." While this is a major update for the seasonal benefit. A bigger announcement is expected later this year as the scheme in its current form expires in March 2026, although it has been extended in the past.
Daily Mail
2 hours ago
- Daily Mail
Revealed: The popular tourist destination where Brits will get the best exchange rate
It feels like it's getting more and more expensive to go abroad, and many Brits are really feeling the pinch when it comes to their holidays. But there's a popular tourist hotspot where your pound will stretch further than anywhere else. Post Office Travel Money's Holiday Spending Report looked at how sterling is performing against its 30 bestselling currencies compared with 12 and three months ago. It reveals that visitors to Turkey from the UK will get the most for their money, due to the ongoing, long-term collapse of the Turkish lira. Over the past three months, the lira has fallen by 12.9 per cent against the pound. And, compared with last June, visitors can now expect to receive around £116 (+30.2 per cent) more when they buy £500 worth of lira. The report also reveals the sterling has bounced back against the US dollar and is currently 6.6 per cent stronger than it was a year ago, and has gained 4.9 per cent in the past three months. For £500, tourists will now receive almost £31 more of US dollars, than they would a year ago. The report also reveals the sterling has bounced back against the US dollar and is currently 6.6 per cent stronger than it was a year ago, but Brits are turning their back on the States Despite this bang for your buck, the report found that many Brits are turning away from travelling to the States. Over half (53 per cent) of those surveyed said they'd actively avoid destinations where they think President Donald Trump's tariffs could affect resort prices, and 39 per cent said they categorically will not travel to the States. But those not wanting to go to the US can still benefit from the dollar recovery, as it extends to the Caribbean and Middle East currencies pegged to the dollar. It means Brits planning trips to Barbados, Antigua, Dubai, and other long-haul holiday favourites will get more for their pounds. Meanwhile, holidaymakers rated Spain (41 per cent), Turkey (35 per cent) and Thailand (31 per cent) best value for money out of 39 worldwide destinations. However, the report found the Thai baht was one of only five of the 30 bestselling currencies to rise in value against sterling. A sterling year-on-year fall of 5.2 per cent means that British visitors will get £27.64 fewer Thai baht on a typical £500 currency transaction. Given that almost half (48 per cent) of holidaymakers said they will choose their destination based on the strength of sterling, two other Far Eastern destinations – Vietnam and Bali - will actually offer Brits more for their money. Visitors to Vietnam will get the equivalent of £42.01 – or 9.2 per cent extra - on a £500 purchase of Vietnamese dong. Those choosing Bali, fourth-placed in the barometer, can expect around £33 (7.1 per cent) more in Indonesian rupiah than a year ago. Laura Plunkett, Head of Travel Money at Post Office, said: 'This year's holiday spending research again demonstrates that holidaymakers don't always set a realistic budget and overspend by large amounts as a result. 'It's great to hear that holidaymakers are already planning to budget more for their holidays this year, to avoid coming unstuck when they arrive at their destination.'
