Warm Homes Discount Scheme
The Department for Business, Energy and Industrial Strategy (BEIS) is responsible for Warm Homes Discount (WHD) policy and legislation. Ofgem’s role is to administer certain elements of the scheme.
Contract status
This contract has now come to an end.
Current WHD information
- WHD information on the Ofgem website (December 2017)
Background to the scheme 2011-2017
Elexon’s initial role
In October 2011, after successfully participating in a competitive tender process, Elexon was awarded a four-year contract by DECC to implement and operate the Warm Home Discount reconciliation mechanism.
- Warm Homes Discount Reconciliation Dispute Committee Terms of Reference
- Terms of Reference submitted to the BSC Panel – 190_07_Warm_Homes
Warm Homes Reconciliation Mechanism 2011
DECC’s Warm Home Discount scheme Core Group requires participating electricity suppliers to provide rebates (the level of which is set by Government through regulation) to a targeted group of consumers that are in receipt of defined pension credits.
The purpose of the reconciliation mechanism is to ensure that scheme costs are shared equitably between the scheme’s electricity suppliers such that no supplier is disadvantaged as a result of having a higher numbers of consumers eligible for the rebate.
Elexon will operate the reconciliation mechanism using market share information provided by Ofgem and consumer numbers provided by DECC, to calculate and then process the reconciliation payments to be made or received by participating suppliers. Elexon may also be called upon to provide dispute resolution services.
The diagram below shows this simplified process, which we will follow three to four times a year.
The reconciliation mechanism will start in December 2011, following a two-and-a-half month implementation phase.
Planned timetables
- Warm Homes Year 6 Final Reconciliation Timetable – November 2017
- Warm Homes Year 6, Second Interim Reconciliation – May 2017
- Warm Homes Discount Scheme year 6 First Reconciliation Run Timetable – December 2016
- Warm Homes Year 6 Final Reconciliation Timetable
- Warm Homes Year 6 Final Reconciliation
- Warm Homes Year 6 2nd Interim Reconciliation
- Warm Homes Discount Scheme year 6 First Reconciliation Run Timetable
- Warm Homes Oct 16 Year 5 Final Reconciliation
- Warm Homes Year 5 first interim 2nd Reconciliation timetable – May 2016
- Warm Homes Oct 15 Year 4 Final Reconciliation
- Warm Homes Nov 13 Year 3 1st interim
- Warm Homes Oct 12 Year 2 1st interim