Overview
- Ofgem proposes writing off up to £500 million of historic household energy arrears under a reset-and-reform package that remains subject to final design.
- The first phase would begin early next year for billpayers on means-tested benefits who owe more than £100 in crisis-related energy debt.
- Funding under discussion includes an estimated £5 per-home charge to help recover uncollected sums, with the impact possibly reduced depending on scheme uptake and changes to collection costs.
- Ofgem and Energy UK report about 1.9 million closed energy accounts still hold roughly £240 million, urging recent movers to contact former suppliers to reclaim credits.
- MPs, led by committee chair Bill Esterson, criticize the plan as too limited given reported £4.4 billion in household arrears and call for broader measures and greater industry contribution.