Resetting the energy debt landscape: the case for a debt relief scheme
Consultation
- Upcoming
- Open
- Closed (awaiting decision)
- Closed (with decision)
- Publication date
- Closing date
- Industry sector
- Supply and Retail Market
We are consulting on whether to introduce a debt relief scheme for people who have got behind with their energy bills during the energy crisis and may struggle to repay.
This consultation is published alongside our overarching debt strategy and consultation on improving debt standards in the domestic retail market.
Who should respond
We are interested in hearing from all stakeholders, including consumers, suppliers, and consumer groups and charities. We particularly welcome views from people with an interest in or experience of energy debt, fuel poverty, and vulnerability.
Background
In March 2024 we published a Call for input on Affordability and debt in the domestic retail market. We discussed the reasons behind the affordability and debt challenges in the energy retail market and what more could be done to protect and support consumers struggling with their bills.
We received feedback from individual consumers, consumer groups and charities, energy suppliers and industry bodies. There was an agreement that there is a case for change in how the sector manages debt and that we should explore interventions to directly reduce debt levels in the industry.
We think that a debt relief scheme will benefit many people who are behind with their energy bills and reduce the burden of built-up unmanageable debt.
Why your views matter
We want to achieve good outcomes for customers in energy debt and payment difficulties by:
- reducing levels of debt
- providing an opportunity to build relationships between customers and their energy suppliers
- providing a mechanism by which customer debt accumulated during the gas crisis can be cleared in proportion to the debt levels in suppliers’ customer portfolios
- reducing, or avoiding an increase in, the future debt allowance, and by doing so reduce the differential between standard credit and direct debit customer rates in the energy price cap
How to respond
Send your response to debtconsultations@ofgem.gov.uk. This consultation closes for responses Thursday 6 February 2025.