Households across Britain are the effects of the global energy crisis. While the energy market has stabilised and the energy price cap has fallen further, energy bills remain significantly higher than we have been used to. Many households have been struggling to pay for the energy they need, facing difficult decisions. Household energy debt has also risen to record levels.

Ofgem is concerned about the impacts on consumers, and potential impacts on the wider energy market now and in the future. To further examine issues around affordability and debt, Ofgem is issuing this Call for Input.

Who should respond

Ofgem would like to hear views from anyone with an interest in these issues,
particularly:
Consumers
Energy sector, including suppliers
Consumer groups and charities
Academics working on these issues
Debt management companies, particularly those with knowledge of debt management practices in other sectors and countries

How to respond

Ofgem states it is seeking written comments on the questions set out in the Call for Input by Monday 13 May 2024.

Please use the Affordability and debt in the domestic retail market – a Call for Input form to tell Ofgem your views.

Alternatively you can email affordabilitydebtCFI@ofgem.gov.uk if you want to provide other documents such as PDFs (pdf), Word (doc) or Excel (xls) as part of your response.

Affordability remains a big concern

Responding to Ofgem’s call for input on debt and affordability, Energy UK’s Deputy Director, Daniel Portis said: “Affordability remains a big concern for many customers and the energy sector itself – so this consultation is welcome. A sustained period of high prices means customer debt has risen to a record £3.1 billion and even with the respite provided by next month’s price cap fall, many customers will still struggle to afford bills higher than what had been the norm – let alone being able to pay down arrears.

“Suppliers do all they can to help customers struggling with bills including providing tens of millions of pounds of discretionary support every year, in addition to that provided through schemes like the Warm Home Discount. However resolving a problem of this scale, when many customers can’t afford energy at the cost which it takes to supply it, is not something the industry can do alone.

“So there’s a clear need to put in place enduring targeted support to make bills more affordable for those customers most in need. Energy prices could also rise again in the future and it won’t be possible to repeat the expensive, universal support the Government had to provide at short notice last winter.

“There is certainly broad agreement across the industry on the need for this but it will require all parties – including the Government as well as Ofgem, suppliers and consumer groups – to work together on detailed and workable solutions.”