Energy bills are currently a major concern for many readers, with reports of exorbitant charges, malfunctioning smart meters, and mounting debts. However, upcoming changes in energy regulations offer a glimmer of hope.
Several positive developments are on the horizon, including revisions to energy policies, complaint procedures, debt management, and support mechanisms. Despite the extensive recent announcements, it’s likely that many of these proposals have gone unnoticed by the public.
A comprehensive overview of the impending changes and their implications for consumers is essential to navigate the evolving energy landscape.
JOIN OUR WHATSAPP GROUP: Receive money news and exclusive deals directly on your phone by joining our Money WhatsApp group. Stay informed about special offers and promotions tailored for our community members. You can easily opt out anytime. For more information, read our Privacy Notice.
SUBSCRIBE TO OUR NEWSLETTER: Sign up for Mirror’s Money newsletter to receive top advice and shopping deals directly to your inbox.
Energy providers offer various options to help reduce exorbitant energy bills for customers facing financial challenges. However, unless outstanding debts are forgiven, they can escalate, causing considerable distress to individuals struggling to make payments.
To address the mounting energy debt crisis, the regulatory body Ofgem has unveiled the initial phase of a plan aimed at managing energy debts.
Current statistics indicate that millions of people are grappling with energy bill arrears totaling approximately £4.4 billion. Ofgem’s proposal includes a Debt Relief Scheme that could potentially write off £500 million of this debt burden. This proposed relief is significant as the accumulated debt cost is distributed among all consumers, adding around £52 to the average annual bill.
The scheme is expected to target individuals receiving means-tested benefits with debts exceeding £100 accumulated during the energy crisis period from April 2022 to March 2024. This initiative is anticipated to benefit approximately 200,000 people.
TIMELINE