24

We asked the regulators what they were doing to address rising debt.

Conclusion
We asked the regulators what they were doing to address rising debt. Ofgem told us that it has worked with Government on a debt-relief scheme to write off a portion of the energy debt accumulated during the energy crisis when prices rose steeply, but said that it was ultimately the role of government to make decisions about the transfer of money from one group of people to another.66 Citizens Advice welcomed the proposed debt-relief scheme, but emphasised that it should be introduced as soon possible, 60 Q 21 61 Q 2; C&AG’s Report, Figure 7 62 Q 11 63 C&AG’s Report, paras 15 and 3.9 64 C&AG’s Report, paras 10-11 65 Q2; C&AG’s Report, para 3.13 66 Qq 16, 43 17 and that additional targeted support for those unable to afford their ongoing consumption will also need to be introduced.67 Ofwat told us that it was aiming to get more customers on to suitable repayment plans by increasing the customer voice in water company decision making, and that it could take enforcement action against companies that fail to proactively offer customers support.68 In the water sector, only 26% of households with a debt have been put onto a repayment plan. Customers on a repayment plan typically owe around £140 less than those not on a plan.69 Martin Lewis told us that standing charges, which are a fixed charge that consumers pay regardless of usage, are a major source of complaints for customers, and can contribute to financial difficulties by limiting how much low users can reduce their bills.70 A small number of energy supply companies have launched experimental ‘low standing charge’ tariffs for a limited number of customers.71 Work should be undertaken by Government on the future of standing charges, with a view to their replacement or abolition. Current arrangements unfairly impact lower energy users.
Addressee Bodies
HM Treasury
Timeline
Report published 11 Sep 2026