£500million set to be written off UK’s household energy debt bill
Ofgem intends to ‘reset’ the nation’s escalating energy debt with new relief scheme
- Ofgem, the energy regulator, is introducing a new relief scheme to write off up to £500 million in household energy bill debt.
- The initiative aims to “reset and reform” the nation's escalating energy debt, which reached a record high of £4.4 billion by the end of June.
- Approximately 195,000 individuals are expected to benefit, focusing on those on means-tested benefits with over £100 of debt from the energy crisis.
- The cost of unpaid debts will continue to be reclaimed across all households’ energy bills, despite the targeted relief.
- Ofgem is also proposing reforms to debt management to prevent future growth and reduce overall costs, with the first phase of the scheme launching early next year.