Ofgem has set out its regulatory expectations on suppliers' use of Additional Support Credit (ASC), the credit that suppliers must offer to vulnerable prepayment customers who have self-disconnected or are at risk of doing so. In a letter dated 25 August 2025, the regulator said both the amount and the instances of ASC provision have increased considerably since the beginning of the gas crisis1.
The ASC rules were introduced in 2020 under the regulation and policy framework covering suppliers' licence conditions. Ofgem's figures put monthly provision at around £4m a month before September 2022, rising to between £8m and £18m a month from that point, with seasonality peaks1.
"From September 2022, increase from around £4m a month to between £8m - £18m a month, with seasonality peaks"
ASC is temporary emergency support intended to help avoid the harm caused by self-disconnection. Ofgem states that consumers are expected to pay the credit back, at a rate appropriate to their circumstances and consistent with the Ability to Pay rules1. The regulator said ASC is not intended as a tool for ongoing affordability support, particularly where continuous provision leads a consumer into an unsustainable level of debt1.
Suppliers are expected to assess each offer or request for ASC individually, based on engagement with the customer, and to set the value, frequency and repayment terms according to the severity of the situation and ability to pay1. Where ASC is refused, suppliers must consider and should offer support with longer-term solutions, which Ofgem lists as signposting to free debt advice, sustainable repayment plans, support with energy efficiency measures, income maximisation, or considering whether prepayment is the most suitable payment method1. Suppliers must also record clear justification for decisions, including evidence for why ASC was judged unsuitable1.
Ofgem said suppliers can consider limiting or rejecting ASC where they believe a customer may be misusing credit, giving the examples of failing to adhere to agreed repayment terms without further engagement, or providing false information about vulnerability status or financial hardship1.
Why it matters for households
ASC is a debt, not a grant. A household that receives it takes on credit that is expected to be repaid, so the rise in provision from around £4m to as much as £18m a month represents a corresponding build-up of repayment obligations among prepayment customers who were already struggling. For a home trying to keep its energy costs under control, the practical effect is that emergency support can delay a disconnection while adding to the balance that has to be cleared later.
The regulator's own framing draws a distinction between short-term emergency credit and the longer-term measures that reduce a household's exposure to high bills in the first place, such as energy efficiency and income maximisation. Ofgem also notes that repeated self-disconnection and continuous ASC provision can be detrimental to mental health and wellbeing and may lead to spending restrictions elsewhere1. The letter does not report how many households received ASC, the average amount advanced, or repayment rates.
What happens next
Ofgem said the clarification forms part of its Debt Strategy work and that it intends to publish an update to its priorities and work programme in the Autumn1. It expects that update to cover a controlled approach to credit in the retail market, including the roles of different payment methods and when financial support should be offered; system inefficiencies and incentives; and improving customer trust and engagement1. The regulator also said it is open to further discussion on vulnerability verification, including when it may be appropriate to ask for verification and what evidence would be appropriate to request1.