Thu, 30 Oct 2025

Thu, 30 Oct 2025 Thousands could have energy debt written off but bills would go up for others

Regulator Ofgem plans to cut £500m from the stack of customer debt - but other billpayers will cover the cost.
Up to £500m of energy debt could be wiped out next year, but it will cost households an extra £5 on their gas and electricity bills. The regulator Ofgem wants to cancel debts for nearly 200,000 people who are struggling to pay their energy supplier. This would bring the total amount owed by households in England, Wales, and Scotland down from a record £4.4bn. However, critics argue that suppliers should use their excess profits to clear the debt instead of passing on the cost to consumers. The plan is for those who make an effort to pay what they owe to have their debts cancelled. It's estimated that over one million households have no arrangement to repay their energy debt. Ofgem says that recovering or cancelling up to £500m will only reduce the rate of increase in customer debt, rather than reverse it. The regulator is also considering introducing a system where new tenants and homeowners must sign up for their gas and electricity supply when they move into a property.
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