Select Committee · Public Accounts Committee

Regulation of water, energy and broadband

Status: Open Opened: 24 Apr 2026 3 recommendations 27 conclusions 1 report
Inquiry scopeThe Public Accounts Committee’s 2025 report on water sector regulation found that a failing sector had been left to flounder, with piecemeal regulators missing in action, further scrutinising the work of Ofwat in January 2026. Its inquiry into improving broadband in 2021 found that digital inequality was compounding the economic inequality harshly exposed by the COVID pandemic. Its 2022 report into the regulation of energy suppliers found that Ofgem’s failures had come at a considerable cost to energy billpayers. The National Audit Office (NAO) will publish the findings of its report into Regulating water, energy and broadband to protect consumers in summer 2026. The NAO is likely consider if regulators are meetings customer experience expectations and how they are protecting customers at higher risk of experiencing harm or detriment. Following the publication, the PAC will hear from senior officials at the key regulatory bodies Ofcom, Ofwat and Ofgem on the findings of the report, as well as consumer rights groups. If you have evidence on these issues, please submit here by 23.59 on Friday 1 May 2026 . Please look at the requirements for written evidence submissions and note that the Committee cannot accept material as evidence that is published elsewhere. Please note that the Committee’s inquiry cannot assist with individual cases. If you need help with an individual problem you are having, you may wish to read the information on Parliament’s website about who you can contact with different issues .

Reports

1 report

Recommendations & Conclusions

30 items
1 Recommendation 13th Report - Regulation of water, energy and broadband

Awareness and take-up of social tariffs is low, meaning millions of eligible customers are missing...

Recommendation · source text

Awareness and take-up of social tariffs is low, meaning millions of eligible customers are missing out on financial support. Ofwat and Ofcom have encouraged companies in water and broadband respectively to offer social tariffs to customers on lower incomes. Take-up of social tariffs has increased. However, only 6% of water customers in England and Wales, and fewer than 9% of eligible broadband customers, are on social tariffs. Policy in Practice, a social policy software and analytics company, estimates that the number of households missing out on social tariffs and related support could be as high as 6.1 million households in water, and 8.4 million households in broadband. Awareness remains low, with only 39% of people who need financial help from their water company aware that that this is something that they can ask for, and even lower (34%) in broadband. Customers must opt-in to receive social tariffs, but this requires customers to apply actively and to understand eligibility, which is not helped by companies using confusing terms such as “equivalised income”. Social tariffs are not always visible on Ofcom-accredited price comparison websites, making it difficult for customers to understand the benefits of social tariffs when making a decision to switch. recommendation a. Within six months, in order to improve accessibility and awareness of social tariffs, Ofcom and Ofwat should complete a review of how social tariffs are advertised and communicated, including accessibility of language. They should use this review to inform and provide best practice guidance for their sectors. They should share the key findings of this review with the committee. b. Ofcom should review its accreditation requirements for price comparison sites, so that they feature information on social tariffs in searches that helps consumers make informed choices.

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2 Recommendation 13th Report - Regulation of water, energy and broadband

The current system relies too heavily on customers in vulnerable circumstances being willing and able...

Recommendation · source text

The current system relies too heavily on customers in vulnerable circumstances being willing and able to repeat personal information to multiple companies. In energy and water, companies maintain the 3 Priority Services Register (PSR) to provide support to customers with additional communication, safety and access needs. Take-up of the PSR has increased in energy and water, though (at 13% of all households) take-up in water remains well below Ofwat’s estimate that half of households could be eligible. The system puts the burden on people in vulnerable circumstances to declare those circumstances to companies and ask for support; for example, the Consumer Council for Water (CCW) reports some good examples of water companies proactively putting people on social tariffs, but that this does not happen as standard. Customers are fearful about bringing their financial situation to their service providers’ attention, and consumers often have to tell multiple companies, and even multiple people and teams within the same company, of their circumstances, which adds to their distress. CCW research indicates that, during supply interruptions in Tunbridge Wells around Christmas 2025, half of the people on the PSR did not receive the help they expected during the incident. There are no PSR arrangements in telecoms, and Ofcom considers that the Department for Business, Innovation, Science and Trade’s (BIST) proposal to establish a multi-sector share once register ‘could be really helpful’. recommendation a. Ofcom, Ofgem and Ofwat should set out a plan for encouraging companies to contact customers proactively to identify whether they should be registered for additional services, such as the PSR. b. BIST should implement a multi-sector ‘tell us once’ PSR approach, including expanding PSR coverage to the telecoms sector, by September 2028.

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3 Conclusion 13th Report - Regulation of water, energy and broadband

Regulators have not done enough to ensure companies communicate proactively and clearly with all customers,...

Conclusion · source text

Regulators have not done enough to ensure companies communicate proactively and clearly with all customers, and to make it easy for customers to contact them. How companies communicate is as important as the information they provide. It is easy for companies to appear to be more transparent by adding ever more information and detail to bills. Only 64% of broadband customers are satisfied with how easy it is to find their companies contact details when making a complaint. Moreover, with companies increasingly using AI chatbots, some customers become stuck in a cycle of trying to ask for help. Increasing reliance on digital communication can leave behind people in vulnerable circumstances, including older people and those with disabilities of mental and physical health, who need different contact mechanisms. Each regulator sets rules and expectations regarding how companies communicate with customers. It is only very recently that the regulators have taken enforcement action against or issued penalties to companies for poor communication with customers. 4 recommendation a. Within 6 months, Ofcom, Ofgem and Ofwat should report back to us setting out a plan for how they will secure improvements in suppliers’ communications with customers. b. They should write to us, setting out in what circumstances and how they will use their powers more forcefully to improve suppliers’ communications with customers.

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4 Conclusion 13th Report - Regulation of water, energy and broadband

Customers in similar circumstances can receive different levels of support from their service provider.

Conclusion · source text

Customers in similar circumstances can receive different levels of support from their service provider. Each regulator has its own definition of vulnerability, including financial vulnerability. In water, Ofwat requires all water companies to offer social tariffs to low-income households, whereas in broadband offering social tariffs is voluntary for most companies. Water and broadband companies have discretion over the eligibility criteria that they set. These criteria are highly inconsistent in water, with some companies basing eligibility for social tariffs on receipt of benefits, while others link eligibility to a customer’s income or to water usage. As a result, consumers in similar circumstances can experience very different outcomes depending on who their supplier is. While the average water social tariff discount amounted to 55% of average household water bills in 2024–25, there is considerable variation around that average. The extent to which water customers on social tariffs saw their bills cut ranged from £27 to £314 per household, depending on their water company. In broadband, the voluntary nature of companies’ social tariff provision also leads to variation in definitions of eligibility criteria, and therefore in financial support to low-income households. recommendation a. Within 6 months, Ofcom, Ofgem and Ofwat should report back to us on how they plan to make definitions of vulnerability that inform companies support to consumers more consistent. b. Ofwat and Ofcom should work with their sponsor departments to consult on changes that would align social tariff eligibility criteria within their sectors. Drawing on the responses they receive, they should issue guidance to companies to align eligibility criteria within their sectors, and in line with their own definition of financial vulnerability. c. BIST should work with regulators to assess the feasibility of using the PSR to identify those who may be eligible for social tariffs, with the aim that providers use this information to proactively inform and provide support to eligible customers. 5

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5 Conclusion 13th Report - Regulation of water, energy and broadband

Despite energy debt rising, and bills increasing, the regulators do not have a comprehensive view...

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Despite energy debt rising, and bills increasing, the regulators do not have a comprehensive view of the debt owed by an individual across the three sectors. Debt is now a substantial problem. By March 2025, customers’ debt to energy supply companies and water companies totalled £7.2 billion. In energy, customer debt to energy supply companies increased in real-terms by 118% from March 2021 to March 2025. With energy and water bills set to rise further, this situation could worsen. When people are starting to struggle financially, early identification of problems and intervention, including making people aware of support available to them, can be key to preventing debts occurring, or accumulating and becoming unmanageable. For consumers struggling to pay, affordability challenges relating to paying for these services and other household spending categories are inter-connected. Ofgem-commissioned research into the causes of debt indicates that some customers may in principle be able to pay an energy bill, but would then fall into debt on other bills. However, there is currently no data sharing about an individual customer’s overall financial circumstances or receipt of social tariffs, between companies, regulators, government or other organisations. In the water sector, only 26% of households with a debt are on a repayment plan. Customers on a repayment plan typically owe around £140 less than those not on a plan. recommendation a. Within 6 months, Ofcom, Ofgem and Ofwat should each create a plan with DWP to help companies in their sectors identify financially vulnerable circumstances proactively, as a first step to making social tariffs a ‘default’ for the most financially vulnerable. b. Within 12 months, BIST should assess the feasibility of developing a single central register of customer debt across the three sectors, allowing financial data to be shared between companies across sectors to identify those in need of support. c. The Department for Environment, Food and Rural Affairs (Defra) should discuss with Ofwat how it will work with water companies to increase the number of customers on debt repayment plans towards levels in other utilities.

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6 Recommendation 13th Report - Regulation of water, energy and broadband

There are gaps in the broader consumer protection landscape in water and broadband.

Recommendation · source text

There are gaps in the broader consumer protection landscape in water and broadband. In the water sector, there is currently no statutorily approved ombudsman in the manner of the other regulated sectors. The Consumer Council for Water recently stopped carrying out alternative dispute resolution service, in April 2026. In its White Paper responding to the Independent Water Commission review of the water sector chaired by Sir John Cunliffe, Defra has committed to establishing an 6 independent ombudsman. Ofwat told us that Defra is currently consulting on establishing statutory water ombudsman to support customers with complaints, but it is not clear when the ombudsman will be introduced. In the telecoms sector, on which the Department for Digital, Culture, Media and Sport (DCMS) leads within government, there is no organisation with statutory responsibility for providing free advice to telecoms consumers. This leaves consumers in vulnerable circumstances with limited support when navigating the complexities of the broadband market. It is not clear why such provision exists for water and energy customers, but not broadband customers, given the role that broadband services play in allowing citizens to participate actively in the modern economy. recommendation a. Defra should set out its current position on the introduction of an independent ombudsman in the water sector, and a timeline for its introduction. b. DCMS should write to the Committee setting out its position on the introduction of a statutory consumer advocate in the telecoms sector. 7 1 Regulatory approaches to protecting consumers in vulnerable circumstances Introduction

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7 Conclusion 13th Report - Regulation of water, energy and broadband

Social tariffs, for water and broadband, provide services at a discounted price for consumers on...

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Social tariffs, for water and broadband, provide services at a discounted price for consumers on lower incomes.7 Take-up of social tariffs has increased, but remains very low.8 Only 6% of water customers in England and Wales, and fewer than 9% of eligible broadband customers, are on social tariffs.9 Martin Lewis referenced research by Policy in Practice, a social policy software and analytics company. Policy in Practice estimates that the number of households missing out on social tariffs and related support could be as high as 6.1 million households in water, and 8.4 million households in broadband.10 Awareness remains low, with only 39% of people who need financial help from their water company aware that that this is something that they can ask for, and an even lower percentage (34%) in broadband.11

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8 Conclusion 13th Report - Regulation of water, energy and broadband

In water, government policy requires water companies to offer social tariffs to lower-income customers, whereas...

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In water, government policy requires water companies to offer social tariffs to lower-income customers, whereas there is no social tariff policy in broadband; Citizens Advice and Martin Lewis told us that for broadband companies, provision is essentially voluntary.12 In both sectors, eligible consumers must apply to receive social tariff benefits, meaning there is a role for both companies and regulators to publicise the availability of social tariffs.13 Ofwat and Ofcom told us they have encouraged water and broadband companies to offer social tariffs to customers on lower incomes.14 In both water and broadband, it is for companies to decide on social tariff eligibility and levels, which as a result can vary widely for consumers in similar circumstances, merely because they are served by different companies.15 This is particularly an issue in water where consumers have no choice in who supplies them.16 CCW told us that the level of discretion given to companies in setting social tariffs also, in effect, contracts out social policy to private companies.17 There is no social tariff in energy, which we note as an outlier requiring further consideration by the Department for Energy Security and Net Zero and Ofgem. Instead, DESNZ sets the Warm Home Discount that provides eligible customers with a £150 discount on their annual energy bill. While energy retailers provide additional support voluntarily, Ofgem accepted this is not a systemised 7 C&AG’s Report, para 15 8 Q 11; C&AG’s Report, para 24 9 Q 11; C&AG’s Report, para 3.9 10 Q 10 11 Q 6; C&AG’s Report, para 15 12 Q 11; C&AG’s Report, para 3.5 13 Q 19 14 Q 11, 80, 83; C&AG’s Report, para 3.5 15 C&AG’s Report, para 3.9 and 3.10 16 C&AG’s Report, para 1.6 17 Qq 20-21 10 form of support and said it had long argued that there is a case for some targeted support for those households that are particularly struggling with their energy bills and have particularly high consumption.18

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9 Conclusion 13th Report - Regulation of water, energy and broadband

Martin Lewis told us that the lack of standardisation of social tariffs across providers creates...

Conclusion · source text

Martin Lewis told us that the lack of standardisation of social tariffs across providers creates confusion among consumers, and makes it difficult to communicate clear messages to consumers about the availability and benefits of social tariffs.19 Customers must opt-in to receive social tariffs, but this requires customers to engage, to understand eligibility and to apply actively.20 Consumers in vulnerable circumstances, the target audience for social tariff messaging, are less likely than other consumers to engage with service providers, for example to switch providers where a choice is possible.21 Efforts to increase engagement are not helped by companies using confusing terms such as “equivalised income”, a term used in assessing eligibility and which is not easy to understand even for very well-informed individuals.22 The report by the Independent Water Commission, chaired by Sir John Cunliffe, recommended a single social tariff, but the government has decided not to move ahead with this at present.23 The Consumer Council for Water (CCW) reported some good examples of water companies proactively putting people on social tariffs, but that this does not happen as standard.24

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10 Conclusion 13th Report - Regulation of water, energy and broadband

Martin Lewis told us that differing social tariff levels also make it difficult for consumers...

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Martin Lewis told us that differing social tariff levels also make it difficult for consumers in financially vulnerable circumstances to compare companies’ offers and identify the best deals for themselves.25 Social tariffs are not always visible on Ofcom-accredited price comparison websites, making it difficult for customers to understand the benefits of social tariffs when making a decision to switch.26 Ofcom told us that it would consider talking to price comparison sites about making social tariffs more visible.27 18 Qq 10, 94 19 Qq 2, 11 20 Qq 2, 11 21 Q 18 22 Qq 8-10, 92 23 Independent Water Commission - Final Report, 21 July 2025, p.7; Q 11 24 Q 20 25 Q 11 26 Q 10 27 Q 80 11 Customers’ notification to companies of vulnerable circumstances

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11 Conclusion 13th Report - Regulation of water, energy and broadband

In the energy and water sectors, companies maintain the Priority Services Register (PSR) to provide...

Conclusion · source text

In the energy and water sectors, companies maintain the Priority Services Register (PSR) to provide support to customers with additional communication, safety and access needs.28 Ofgem and Ofwat have encouraged companies in their sectors to increase take-up of the PSR by customers.29 Take-up of the PSR has increased over time: in energy, it increased from 16% in 2016–17 to 34% of customers in 2024–25; in water, it increased from 2% in 2019–20 to 13% of all households in 2024–25.30 However, take-up in water remains well below Ofwat’s estimate that half of households could be eligible.31 A survey reported by Citizens Advice in 2026 found that public awareness of the PSR remains low.32

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12 Conclusion 13th Report - Regulation of water, energy and broadband

Martin Lewis told us that, as with social tariffs, the system places the burden on...

Conclusion · source text

Martin Lewis told us that, as with social tariffs, the system places the burden on people in vulnerable circumstances to declare those circumstances to companies and to ask for support.33 CCW told us that, for those consumers who are aware, they may be deterred from seeking support, for example if they are fearful about bringing their financial situation to their service providers’ attention. People in vulnerable circumstances may need to tell several companies when registering, because, for example, supply and distribution companies in energy are separate. However, CCW told us that consumers often have to tell multiple people and teams within the same company, of their circumstances which adds to their distress.34 Martin Lewis and Citizens Advice were keen for a more centralised system allowing customers to “tell once”, where that information could be shared with other providers if the consumer consents.35 CCW also called for specialist, dedicated help from expert teams who understand how peoples’ vulnerabilities intersect, and for greater proactivity and curiosity from regulators in using their powers to ensure companies provide support in a much more standard, business-as-usual way.36 28 Qq 21, 25 29 C&AG’s Report, para 19 30 Q 25; C&AG’s Report, para 19 31 Qq 25, 54, 62-63, 76; C&AG’s Report para 19 32 Q 25 ; Citizens Advice, Ask Once - Consumer views on a Multi-sector Priority Services Register, May 2026 33 Q 4 34 Q 6 35 Q 4, 17 36 Qq 13, 20 12

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13 Conclusion 13th Report - Regulation of water, energy and broadband

For those consumers who are aware that support is available through the PSR, there is...

Conclusion · source text

For those consumers who are aware that support is available through the PSR, there is confusion about what that support is. CCW research indicates that, during supply interruptions in Tunbridge Wells around Christmas 2025, half of the people on the PSR did not receive the help they expected during the incident.37 More widely, 59% of PSR customers think it means that, if there is an outage and there is no water, they will get their water supply restored first, which is not automatically true. CCW told us it felt like companies were building lists of customers, but not building relationships; two in five people on a PSR have been contacted by their water company since they joined it. CCW said that not building relationships with customers means companies do not provide targeted support to people on the register when incidents such as the ones in Tunbridge Wells happen.38

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14 Conclusion 13th Report - Regulation of water, energy and broadband

There are no PSR arrangements in telecoms.

Conclusion · source text

There are no PSR arrangements in telecoms. Instead, Ofcom requires companies to give consideration to services for people in vulnerable circumstances, and to register customers based on needs.39 In 2024, the overall satisfaction for customers with a limiting condition was five percentage points lower than consumer satisfaction overall.40 When asked whether it supported the former Department for Business and Trade’s proposal in May 2024 to establish a multi-sector share once register, Ofcom said ‘that could be really helpful’.41 Proactive communication by companies with customers

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15 Conclusion 13th Report - Regulation of water, energy and broadband

The National Audit Office (NAO) found that, although each regulator sets rules and expectations regarding...

Conclusion · source text

The National Audit Office (NAO) found that, although each regulator sets rules and expectations regarding how companies communicate with customers, many customers still find it difficult to contact the company supplying them. For example, in 2024 only 64% of broadband customers were satisfied with how easy it was to find the contact details of their supplier when making a complaint. Similarly, it found that energy customers can find it challenging to contact their supplier through communication channels that meet their needs, such as telephone.42

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16 Conclusion 13th Report - Regulation of water, energy and broadband

The way that companies communicate with customers is often as important as the information that...

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The way that companies communicate with customers is often as important as the information that is provided. For example, Martin Lewis told us that, although adding information on customers’ bills 37 Q 29 38 Q 21 39 Q 95; C&AG’s Report, para 20 40 C&AG’s Report, para 12 41 Q 95; C&AG’s Report, para 21 42 C&AG’s Report, paras 13, 2.16 13 may appear to improve transparency, it is not an effective means of sharing information with customers because bills can be complicated and customers are unlikely to read them in detail.43 Instead, he suggested that companies should approach communication with customers about the support that is available to them in the same way they communicate in selling their services.44

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17 Conclusion 13th Report - Regulation of water, energy and broadband

Increasing use of digital communication can leave behind people in vulnerable circumstances, including older people...

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Increasing use of digital communication can leave behind people in vulnerable circumstances, including older people and those with disabilities of mental and physical health, who need or prefer alternative communication channels.45 Citizens Advice told the committee that companies increasingly using AI chatbots to respond to customer queries, which can leave some customers stuck in a cycle of trying to ask for help.46 Ofcom told us that it requires companies to offer multiple communication channels, including email, phone and post to meet customers preferences.47 Citizens Advice told the committee that its advisers ‘can find it really difficult to get in contact with creditors, including energy companies, water companies and telecoms companies, and they can be really slow to act, or not accessible through different channels’.48

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18 Conclusion 13th Report - Regulation of water, energy and broadband

It is only very recently that the regulators have taken enforcement action against, or issued...

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It is only very recently that the regulators have taken enforcement action against, or issued penalties to companies for, poor communication with customers. We asked the regulators what action they had taken to improve customers’ experience of communicating with their suppliers. Ofgem told us that a few years previously it had taken compliance action against a supplier that was an outlier in terms of excessive call waiting times and call abandonment rates, and suggested that this contributed to a sector wide improvement.49 Ofcom told us that it was concluding an investigation into a company’s customer service practices.50 Since the evidence session, Ofcom has written to us explaining that it issued a £28 million fine to Virgin Media for repeatedly preventing customers from cancelling contracts or switching providers through its communications practices, such as unnecessary or excessive call transfers and repeatedly keeping customers on hold.51 Ofwat told us that it opened its first investigation using the customer-focused license condition earlier this year to South East Water but, at the time of our evidence session, had not yet issued any penalties to companies for failing to proactively communicate 43 Q 12 44 Q 12 45 Q 4 46 Q 7 47 Q 26 48 Q 7 49 Q 39 50 Q 45 51 Letter from the CEO of Ofcom relating to an investigation into Virgin Media, 8 July 2026 14 with consumers.52 Since the evidence session, Ofwat has confirmed a £30.5 million redress package with South East Water, following three investigations into the company. One of these investigations was launched under Ofwat’s customer-focused license condition, and Ofwat found that the company failed to ensure that affected customers were provided with the right information and appropriate support during supply incidents.53 52 Q 89 53 Ofwat, Enforcement case into South East Water’s customer service, 15 July 2026 15 2 Defining and understanding vulnerability Defining vulnerability, and variation in outcomes

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19 Conclusion 13th Report - Regulation of water, energy and broadband

Defining vulnerable circumstances is complex, but essential to ensuring that people needing support are identified...

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Defining vulnerable circumstances is complex, but essential to ensuring that people needing support are identified and that support is tailored to their specific needs. People can move in and out of vulnerabilities on a temporary basis, for example becoming financially at risk or if they have been bereaved.54 Even when people are identified as eligible for inclusion on the PSR, identifying and understanding their needs is important to ensuring they receive the right support. CCW noted that during the supply incidents in Tunbridge Wells, the company delivered bottled water to everyone on the PSR, but left large bottles on peoples’ front paths without taking account of those with mobility issues who couldn’t bring bottles into their homes.55

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20 Conclusion 13th Report - Regulation of water, energy and broadband

Each regulator has its own definition of vulnerability, including financial vulnerability.56 Martin Lewis told us...

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Each regulator has its own definition of vulnerability, including financial vulnerability.56 Martin Lewis told us that regulators could be doing more to define who should and shouldn’t be protected in such circumstances.57 For example, in markets with competition, regulators promote switching to consumers as a means by which they can obtain the best deal for themselves. While some people can benefit from competition and switching, other groups find it challenging to navigate such complex markets.58

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21 Conclusion 13th Report - Regulation of water, energy and broadband

There are inconsistencies in the eligibility criteria for supporting consumers in vulnerable circumstances.

Conclusion · source text

There are inconsistencies in the eligibility criteria for supporting consumers in vulnerable circumstances. In water, the Department for Environment, Food & Rural Affairs (Defra) issues guidance setting the framework within which all water companies offer social tariffs to low-income households.59 Water and broadband companies have discretion over the eligibility 54 C&AG’s Report, para 3 55 Q 21 56 C&AG’s Report, paras 4, 3.21-3.22 and 3.25 57 Q 10 58 Qq 4, 17 59 C&AG’s Report, para 3.5 16 criteria that they set for financial and other support.60 These criteria are highly inconsistent in water, with some companies basing eligibility for social tariffs on receipt of benefits, while others link eligibility to a customer’s income or to water usage.61 In broadband, the voluntary nature of companies’ social tariff provision also leads to variation in definitions of eligibility criteria, and therefore in financial support to low-income households.62

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22 Conclusion 13th Report - Regulation of water, energy and broadband

The National Audit Office (NAO) report found that consumers in otherwise similar vulnerable circumstances can...

Conclusion · source text

The National Audit Office (NAO) report found that consumers in otherwise similar vulnerable circumstances can experience very different outcomes depending on who their provider is. While the average social tariff discount amounted to 55% of average household water bills in 2024–25, there is considerable variation around that average. The extent to which water customers on social tariffs saw their bills cut ranged from £27 to £314 per household, depending on their water company.63 More generally, consumers in vulnerable circumstances encounter mixed experiences compared with consumers as a whole. Consumers in financially vulnerable circumstances report lower-than-average consumer satisfaction, while consumers recorded on energy supply companies’ PSRs report higher satisfaction than customers not on the register.64 Understanding vulnerable circumstances across sectors

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23 Conclusion 13th Report - Regulation of water, energy and broadband

Debt owed by consumers to utility companies is now a substantial problem.

Conclusion · source text

Debt owed by consumers to utility companies is now a substantial problem. The NAO report found that, by March 2025, customers’ debt to energy supply companies and water companies totalled £7.2 billion. In energy, customer debt to energy supply companies increased in real-terms by 118% from March 2021 to March 2025. With energy and water bills set to rise further, this situation could worsen.65

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24 Conclusion 13th Report - Regulation of water, energy and broadband

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

Conclusion · source text

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.

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25 Conclusion 13th Report - Regulation of water, energy and broadband

Written evidence to the committee from Money Wellness highlights that when people are starting to...

Conclusion · source text

Written evidence to the committee from Money Wellness highlights that when people are starting to struggle financially, early identification of problems and intervention, including making people aware of support available to them, can be key to preventing debts occurring or accumulating and becoming unmanageable.72 CCW told us that customers in financially vulnerable circumstances are not getting the help they need early enough in the process, and are not always proactively offered the help they need or are even aware that it exists.73

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26 Conclusion 13th Report - Regulation of water, energy and broadband

For consumers struggling to pay their bills, affordability challenges relating to paying for these essential...

Conclusion · source text

For consumers struggling to pay their bills, affordability challenges relating to paying for these essential services and other household spending categories are inter-connected. Ofgem-commissioned research into the causes of energy debt indicates that some customers may in principle be able to pay an energy bill, but they would then fall into debt on other bills.74 Written evidence submitted by Money Wellness highlighted that the customers they supported in 2026 had an average of seven different debts simultaneously, illustrating the complex and overlapping nature of financial difficulty.75 67 Q 15 68 Q 66 69 C&AG’s Report, para 17 70 Q 3, 16 71 MoneySavingExpert, EDF, E.on and Octopus Energy launch limited trials of ‘low Standing Charge’ tariffs 72 WEB0017 73 Q 6 74 C&AG’s Report, para 3.15 75 WEB0017; 18

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27 Conclusion 13th Report - Regulation of water, energy and broadband

There are currently no arrangements in place for sharing of information about an individual customer’s...

Conclusion · source text

There are currently no arrangements in place for sharing of information about an individual customer’s financial circumstances or receipt of social tariffs, between companies, regulators, government or other organisations. This means that it can be challenging to identify customers who are experiencing financial vulnerability across the three sectors, and warning signs are rarely brought together in a coordinated or systematic way.76 Ofgem told us that it has work ongoing with debt charities to standardise information from consumers so that all household finances and debt challenges are taken into account in repayment plans.77 Written evidence submitted to us highlights that, with suitable privacy safeguards, there is scope for more and better sharing of information to identify those in financially vulnerable circumstances. The Money and Mental Health Policy Institute suggests that better data sharing could help to target and potentially even automate support to prevent individuals’ financial problems from worsening.78 76 WEB0017 77 Q 71 78 WEB0014 19 3 Gaps in the broader consumer protection landscape Alternative dispute resolution in water

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28 Conclusion 13th Report - Regulation of water, energy and broadband

In the water sector, there is currently no statutorily approved ombudsman in the manner of...

Conclusion · source text

In the water sector, there is currently no statutorily approved ombudsman in the manner of the other regulated sectors.79 In written correspondence received after our evidence session, Ofwat told us that the Consumer Council for Water (CCW) carries out some functions of an ombudsman, such as mediating disputes between customers and their company, but that in April 2026 it stopped carrying out alternative dispute resolution services.80

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29 Conclusion 13th Report - Regulation of water, energy and broadband

In its White Paper responding to the Independent Water Commission review of the water sector...

Conclusion · source text

In its White Paper responding to the Independent Water Commission review of the water sector chaired by Sir John Cunliffe, the Department for Environment, Food and Rural Affairs (Defra) has committed to establishing an independent ombudsman.81 In written correspondence, Ofwat told us that Defra is currently consulting on establishing a statutory water ombudsman, to support customers with complaints as part of wider reforms to the water sector.82 Statutory consumer representation in broadband

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HM Treasury
30 Conclusion 13th Report - Regulation of water, energy and broadband

Broadband services play an important role in allowing citizens to participate actively in the modern...

Conclusion · source text

Broadband services play an important role in allowing citizens to participate actively in the modern economy.83 In the telecoms sector, there is no organisation with statutory responsibility for providing free independent advice to consumers, when this does exist for energy and water customers. Citizens Advice told us that, as the statutory advocate 79 C&AG’s Report, figure 2 80 Letter from the Interim CEO of Ofwat relating to Regulating water, energy and broadband, dated 13 July 2026 81 HM Government, A New Vision for Water, 20 January 2026, p. 31 82 Letter from the Interim CEO of Ofwat relating to Regulating water, energy and broadband, dated 13 July 2026 83 C&AG’s Report, para 1 20 for energy, it provides over £25 million of benefits to energy customers every year.84 Citizens Advice said that this provision does not currently exist within the telecoms sector, and that people who encounter problems with their broadband provider are missing out on support.85 Martin Lewis told us that switching is a key to securing the best deals in the broadband market, which is something that vulnerable consumers can find particularly challenging.86 84 Q 17 85 Q 17 86 Q 18, 19 21

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HM Treasury

Oral evidence sessions

1 session

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Date Session and witnesses Source
29 Jun 2026 Ali Bell · Consumer Council for Water, Anne Pardoe · Citizens Advice, Chris Walters · Musicians’ Union, Dame Melanie Dawes · Ofcom, Dame Melanie Dawes · Ofcom, Martin Lewis CBE · Money Saving Expert, Tim Jarvis · Ofgem View ↗

Written evidence

2 submissions recorded

Submission metadata is shown here; use the source links to read the evidence on Parliament’s website.

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ReferenceDateSubmitter
WEB0024
Full text not held
3 Sep 2026 Policy Practice
WEB0023
Full text not held
3 Sep 2026 Mr Peter Knowles

Who gave evidence

6 witnesses

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WitnessOrganisationSessions
Dame Melanie Dawes · Chief Executive Ofcom 2
Ali Bell · Director of Communications and Policy Consumer Council for Water 1
Anne Pardoe · Head of Policy Citizens Advice 1
Chris Walters · National Organiser, Education and Health & Wellbeing Musicians’ Union 1
Martin Lewis CBE · Chair Money Saving Expert 1
Tim Jarvis · Director General for Markets Ofgem 1

Correspondence

4 letters

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