Watchdog Ofgem said it is planning to “reset and reform” the UK’s growing pile of energy debt, which has added pressure to all household bills.
Currently £52 is added to annual household energy bills under the current price cap via a debt allowance to cover energy debts that are never paid and have to be written off.
Ofgem said it expects to write off up to £500 million of historic debt built up during the recent energy crisis, in a move which could help around 195,000 people.
The regulator confirmed that a final consultation on the first phase of its debt relief scheme is set to be published shortly.
Figures published by Ofgem last month showed that the money owed to suppliers by households in England, Scotland and Wales…