Recommendation 4

The Department and Ofgem are not doing enough to ensure people falling into debt with their energy bills receive the advice and support they need from their energy supplier. At the same time as energy prices have risen significantly so has the extent to which people have fallen into debt with their energy bills. Consumer energy debt is at a worryingly high level, with £3.7 billion owed by domestic consumers for both electricity 4 and gas in 2024 compared with £1.8 billion in 2021. Millions of people are living in cold conditions and cutting back on essential costs such as food. Many people who are unable to pay their energy bill struggle to receive good, accurate and helpful advice or support from their energy supplier. The Department accepts this is a serious issue and is working with Citizens Advice to look at what can be done to provide a stronger debt advice service to support customers. Ofgem has recently launched a review of service standards and support for people in debt; and the Department has initiated a wider review of Ofgem to ensure that it has the powers to address any poor outcomes for energy consumers. These reviews provide an opportunity to ensure consumers receive better support from their energy suppliers when they face difficulty paying their bills. recommendation The Department should collect data on how well suppliers are performing in providing advice and support to consumers that struggle to pay their energy bills. The Department should use this data as part of its review of Ofgem, to assess whether it has the information and powers to deal with suppliers that do not provide sufficient advice and support to consumers in debt.