Ofgem published a document setting out good practice for supporting customers in payment difficulty on 27 September 20221. The regulator said it was sharing approaches it believes can improve outcomes for consumers who fall behind on their energy bills and raise standards across the consumer debt journey1.
The publication is classified by Ofgem as correspondence and other, and runs to a single PDF of 206.58KB1. Ofgem said it knows millions of domestic consumers will struggle with their energy bills this winter and beyond, and that suppliers will play a crucial role in helping their consumers if they get into payment difficulty1.
"We are sharing good practice that we think can help ensure positive outcomes for customers who are in payment difficulty and raise standards across the board in the consumer debt journey."
The regulator encouraged all suppliers to consider similar approaches that would help them ensure positive outcomes for their consumers this winter and beyond1. The document sits alongside two related Ofgem publications: regulatory expectations on supporting customers in payment difficulty, and a completed review of how suppliers support customers in payment difficulty1. Ofgem has not reported, in this publication, which suppliers contributed the examples or what specific practices the document contains beyond the description given1.
Why it matters for households
The document concerns the point at which a household stops paying in full and enters arrears. Ofgem's stated aim is that the handling of that journey produces positive outcomes for the customer, and that standards rise across the board rather than varying by supplier1. For a household, the practical relevance lies in how a supplier behaves once a debt exists: what it offers, how it communicates and how quickly a repayment arrangement is reached. Ofgem frames suppliers as playing a crucial role at that stage1. The regulator's wider role in the market, including how it handles complaints and redress, is set out in its regulation of the energy market and in the complaints and redress process.
What happens next
Ofgem said it encourages all suppliers to consider similar approaches to those shared, to help ensure positive outcomes for their consumers this winter and beyond1. No deadline, compliance date or enforcement step is given in the publication1.