Regulations come into force and scheme period begins

The Warm Home Discount (Scotland) Regulations 2026 came into force on 1 May 2026, the day after they were made on 30 April 2026¹. The regulations continue the scheme for reducing fuel poverty in Scotland, to be known as the Warm Home Discount (Scotland) Scheme, and set a scheme period running from commencement to 31st March 2031¹.

The regulations define the "prescribed rebate" as £150¹. A scheme year is either the period from commencement to 31st March 2027, or a 12 month period beginning 1st April in any of the years from 2027 to 2030¹. Suppliers must provide the prescribed rebate to core group customers specified in a notice on or before 31st March in the scheme year¹. Where a late rebate notice is received, the supplier must provide the rebate using a method specified in regulation 10(3)(a) to (e) before the end of the period of 30 days beginning with the day it receives that notice¹. One permitted method is crediting the customer's electricity account so that the amount charged, including VAT, is reduced by the amount of the prescribed rebate¹.

The regulations set thresholds for supplier obligations. A compulsory scheme electricity supplier is one that had at least 1,000 GB domestic customers on 31st December preceding the start of the scheme year, or supplied gas to GB domestic customers on that date¹. Spending obligations are expressed as percentages of fixed sums: a supplier's obligation must not exceed its obligation percentage of £300,000 for customers supplied with neither electricity nor gas through a pre-payment meter, £600,000 in total in one case, and £800,000 in total in another¹. Where the aggregate non-core spending obligation for the scheme year exceeds £7 million, a different calculation applies¹.

The regulations also define who counts. A "GB domestic customer" is an owner or occupier of domestic premises in England, Wales or Scotland supplied with electricity or gas wholly or mainly for domestic purposes, while a "Scotland domestic customer" is the equivalent in Scotland¹. Someone staying in hospital continues to be treated as occupying their home as their sole or main residence if the stay has not exceeded 52 weeks from the date of admission; temporary residence in a care home or hospice is treated similarly¹. Two people are partners if they are married to, or civil partners of, each other and members of the same household, or live together as if they were spouses or civil partners¹.

Why it matters for households

The scheme period runs to 31st March 2031, so the framework for the £150 rebate in Scotland is fixed for the next five scheme years¹. The first scheme year ends on 31st March 2027¹. Households in the core group, as determined under Schedule 1, are the ones to whom suppliers must provide the rebate by 31st March each scheme year¹. Eligibility turns on being an owner or occupier of domestic premises supplied with electricity or gas wholly or mainly for domestic purposes, and on being within the core group¹. The regulations treat people in hospital for up to 52 weeks, and those temporarily in a care home or hospice, as still occupying their home for these purposes¹. Suppliers with at least 1,000 GB domestic customers on the preceding 31st December, or that supplied gas to GB domestic customers on that date, are compulsory scheme electricity suppliers¹. The regulations extend to Scotland only, apart from regulation 1 and regulation 38, which extend to England and Wales and Scotland¹.

What happens next

Relevant suppliers must notify the Gas and Electricity Markets Authority of their number of GB domestic customers on the preceding 31st December on or before the 21st day after the commencement day, and by 1st February in 2027, 2028, 2029, 2030 and 2031¹. Where a supplier does not notify, the Authority must determine that number¹. The regulations state that certain duties and powers continue to apply after the end of the scheme period, including supplier duties under regulations 10, 11(4) and (7), 14, 15(5), 27(5) and 35(3), the Secretary of State's duties and powers under regulations 11(2), 12, 15 and 16, and the Authority's duties and powers under regulations 35 and 36(1) and (2)¹.