Warm Homes Discount Scheme

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.

What is the Warm Homes Reconciliation Mechanism?

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.