Up to £500m in energy bill debt is to be cancelled by regulator Ofgem as it aims to tackle record levels of arrears.
As many as 195,000 bill payers could be helped by the write-off in the first part of Ofgem’s proposals to reduce debt and prevent it rising to such highs again.
Only a small proportion of the record-high £4.4bn debt mound in the energy system will be erased. Up to a third of this, between £1.1bn and £1.7bn, is never paid.
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Consumers engaging with a debt advice charity or making some contribution to their bill arrears or ongoing energy use are set to benefit.
Eligible customers will also be identified and contacted automatically by suppliers.
How…