Latest news with #Utilita
The Independent
a day ago
- Business
- The Independent
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.'
The Independent
2 days ago
- Business
- The Independent
4,000 customers to get compensation for unpaid Warm Home Discounts
Utilita will pay £277,000 in compensation to 4,000 customers for failing to make mandatory Warm Home Discount payments on time between 2023 and 2024. The delay was attributed to an internal error in processing payments. Utilita has already paid £30,000 and agreed to pay an additional £247,000. The Warm Home Discount scheme, administered by Ofgem, provides an automatic £150 payment annually to low-income individuals, applied by their energy supplier. Ofgem's latest report showed that seven other suppliers also failed to pass on these discounts in 2023 and 2024, leading to combined compensation payments of £484,960. Ofgem said that timely payments are crucial for vulnerable customers and stated that failures to make scheme payments on time are unacceptable.
The Independent
2 days ago
- Business
- The Independent
Major UK energy company to give thousands of customers £150 compensation for payment error
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. 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.'
Glasgow Times
2 days ago
- Business
- Glasgow Times
Ofgem fines Utilita over Warm Home Discount payment delays
The regulator found Utilita – which supplies 800,000 customers – failed to pass on the mandatory discount to more than 4,000 customers over 2023 to 2024 because of an internal error in processing payments. The Warm Home Discount scheme – which is administered by Ofgem on behalf of the Government – helps eligible energy consumers on low incomes by offering an automatic payment of £150 each year. ⚠️@utilitaenergy missed the 31.03.24 deadline to make Warm Home Discount payment by 12 days due to internal error. Utilita self-reported this to us last year Affected customers have been contacted, don't need to do anything and will be auto-compensated ➡️ — Ofgem (@ofgem) June 17, 2025 Ofgem said Utilita had 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. Cathryn Scott, regulatory director of market oversight and enforcement at Ofgem, says: '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. 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.' Recommended reading: A Utilita spokesman said: 'Due to an administrative oversight, we missed the March 31 deadline to process the Warm Home Discount payment for a small cohort of customers. "All customers received their payment within 12 days. 'We sincerely apologise for any inconvenience this may have caused. We promptly reported our mistake to Ofgem and paid the impacted customers a goodwill gesture.'
Daily Record
2 days ago
- Business
- Daily Record
£150 compensation payment for over 4,000 people with major energy supplier
Utilita to pay £277,000 for Warm Home Discount payment failures over the 2023/24 winter period. How To Prevent Condensation and Black Mould in Your Home Ofgem has said energy firm Utilita is to pay around £277,000 in compensation after failing to pay its Warm Home Discount payments on time. The energy regulator found Utilita - which supplies 800,000 customers - failed to pass on the mandatory discount to more than 4,000 customers over 2023 to 2024 because of an internal error in processing payments. The Warm Home Discount scheme - which is administered by Ofgem on behalf of the Department for Work and Pensions (DWP) - helps eligible people on a low income by applying an automatic credit of £150 on their energy account each year to help with higher winter fuel bills. Ofgem said Utilita had 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. 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. 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.' A Utilita spokesman said: 'Due to an administrative oversight, we missed the March 31 deadline to process the Warm Home Discount payment for a small cohort of customers. All customers received their payment within 12 days. 'We sincerely apologise for any inconvenience this may have caused. We promptly reported our mistake to Ofgem and paid the impacted customers a goodwill gesture.' Warm Home Discount Scheme Nearly three million more households across Great Britain would be eligible for discounts on their energy bills later this year under new proposals. The UK Government is now analysing feedback from an online consultation which closed at the end of March. The Department for Energy Security and Net Zero (DESNZ) said one in five families across the country would get financial help under the new plans which would see an additional 2.7 million extra households - including nearly one million with children - eligible for the £150 Warm Home Discount Scheme this winter. This would bring the total number of eligible households to an estimated 6.1m. Full details on the Warm Home Discount Scheme can be found on here.
