Ofgem has announced a new plan to tackle the growing crisis of energy debt through a new Debt Relief Scheme (DRS). The regulator has confirmed the first phase of the scheme will write off up to £500 million of historic debt built up during the energy crisis, with total energy debt across the UK now reaching £4.4 billion.
Ofgem has stated a final consultation on the first phase of the DRS will be published soon. Alongside the scheme, StepChange would like to see more action to address energy affordability, alongside improvements to energy debt collection standards.
Adam Butler, Public Policy Manager at StepChange, said“Among our clients seeking help from StepChange, energy debt has increased to unprecedented…