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Thousands to get £150 after energy firm fails to pass on discount

One of the UK’s biggest Pay As You Go energy providers has been ordered to cough up £150 in compensation to thousands of customers – and for good reason.

Utilita failed to hand over the government’s Warm Home Discount to more than 4,000 customers between 2023 and 2024.

That £150 might not sound like much to some, but for households already stretched to the limit, it could have made a big difference. Especially since the scheme is designed to help people on lower incomes manage soaring energy costs.

So what happened?

According to energy regulator Ofgem, Utilita’s blunder came down to an “internal error in processing payments”. In plain English: they messed up, and people were left out of pocket as a result.

Utilita has already paid out £30,000 in initial compensation. But now, under pressure from Ofgem, it’s agreed to hand over a further £247,000 to make things right.

That brings the total bill to £277,000, and a much-needed win for consumers.

Not just Utilita

Ofgem’s recent Supplier Performance Report also revealed that Utilita wasn’t alone. Seven other suppliers failed to deliver Warm Home Discount payments properly over the same period, with a combined £484,960 now being paid out either to customers, fuel poverty charities or Ofgem’s voluntary redress fund.

The worst offender? Utility Warehouse, which has paid more than £380,000 in compensation.

Here’s the full list of other suppliers named:

  • Rebel Energy

  • Good Energy

  • Foxglove Energy

  • Green Energy (UK)

  • Tomato Energy

  • Utility Warehouse

  • Tru Energy

Why it matters

The Warm Home Discount scheme isn’t a nice little bonus. It’s a lifeline for vulnerable households. It’s meant to take some pressure off people already struggling to keep the lights on and the heating running.

As Ofgem rightly points out, even a short delay in these payments can cause real harm.

So while it’s good to see compensation being paid, it’s also a reminder of just how important it is for energy companies to get things right the first time.

Your rights matter

If you’ve been affected, the money should be on its way. But this incident highlights a bigger issue: too often, it’s the customer who loses out when big companies make mistakes.

That’s exactly why Join the Claim exists. We’re here to shine a light on these failings and make sure people aren’t left to fight for justice on their own.

Think you might be owed compensation, from a bank, a car maker, or even an energy firm? We’ll help you check in seconds and, if you qualify, we’ll put you in touch with a law firm ready to fight your corner.

Because when companies fall short, you shouldn’t have to pay the price.

Find out more about compensation you could be due

New opportunities for compensation are always emerging and you could be eligible. Check out some of the group actions you might be able to join on our website.

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