Energy suppliers launch debt relief scheme for arrears
A new industry-funded debt relief mechanism will help households written off energy debts accumulated during the 2022–24 price crisis.
By Money Guide editorial team
Published:
An industry-funded scheme to write off historic energy debts run up during the 2022–24 cost-of-living crisis began accepting referrals this month. It is targeted at households with debts they have no realistic prospect of repaying, and is funded from a combination of supplier contributions and a small uplift on standing charges.
Eligibility is assessed by suppliers using common criteria including income, household composition and prospects for future affordability. Referrals are accepted directly via supplier hardship teams, or through advice agencies including Citizens Advice and StepChange.
The scheme sits alongside existing supplier hardship grants (which can write off arrears or supply prepayment top-ups), the Warm Home Discount, and breathing-space protection under the Debt Respite Scheme.
Households in energy arrears are reminded that suppliers must offer affordable repayment plans and cannot install a prepayment meter remotely against the customer's will without going through strengthened post-2023 safeguards.