Ofgem introduced changes to company licences in October 2023 to make it easier for customers to contact their energy supply company, according to a National Audit Office report published on 10 June 20261. The regulator's licence condition changes were intended to remove barriers that stop households reaching their supplier1.
The NAO records the change as one of a series of consumer-protection interventions across water, energy and broadband. In February 2024, Ofwat introduced a dedicated "customer-focused licence condition" for each company in England and Wales, which the NAO says filled a gap in its powers to act when water companies' treatment of consumers falls below expectations1. In February 2026, the Department for Science, Innovation and Technology introduced a telecoms consumer charter committing signatories to signposting eligible customers to social tariffs, including through websites, customer service scripts and end-of-contract notifications1.
"In October 2023, Ofgem introduced licence condition changes that make it easier for customers to contact their energy supply company"
The report sets out the scale of the debt position that sits behind contact and payment arrangements. Total debt owed by customers to energy supply companies and water companies reached £7.2bn by March 2025, a 118% real-terms increase in customer debt to energy supply companies from around March 2021 to March 20251. Customers on repayment plans carry lower balances on average: energy customers on repayment plans owe around £1,000 less than those without one in place, and water customers on repayment plans owe around £140 less1. Take-up remains limited, with 25% of total customer debt to energy supply companies held by customers who have repayment plans in place, and 22% of total debt to water companies1.
| Measure | Figure |
|---|---|
| Total debt owed to energy and water companies by March 2025 | £7.2bn |
| Real-terms increase in customer debt to energy supply companies, March 2021 to March 2025 | 118% |
| Energy customers on repayment plans owe, versus those without | around £1,000 less |
| Share of energy debt held by customers with repayment plans | 25% |
| Energy consumers registered on their company's Priority Services Register, 2024-25 | 34%, against 16% in 2016-17 |
The NAO also reports lower satisfaction among consumers in financially vulnerable circumstances: 10 percentage points lower for energy consumers in July and August 2025 compared with consumers overall, and four percentage points lower for broadband customers in 20241. On contact specifically, 64% of broadband customers who complained to their provider in the last six months were satisfied with the ease of finding their contact details1. The report does not give an equivalent energy figure for that measure.
Why it matters for households
Contact arrangements determine how quickly a household can raise a billing error, dispute a meter reading, ask for a repayment plan or flag a vulnerability. The NAO's figures suggest that where customers do reach their supplier and agree a repayment plan, balances tend to be lower than for those without one, though the report does not establish that the plan causes the difference1. Registration on the Priority Services Register, which suppliers use to identify households needing extra support, stood at 34% of energy consumers in 2024-25, up from 16% in 2016-17, while Ofwat estimates half of households could be eligible for its water equivalent1. For a home's energy independence, the practical effect is that the route to a supplier, and the record a supplier holds about a household's circumstances, shape what support and payment terms are available when bills become difficult.
What happens next
In April 2026, the Department for Energy Security and Net Zero published proposals for changes to Ofgem's remit, powers and regulatory approaches1. In May 2026, Ofgem concluded that British Gas had failed to meet the standards required for energy suppliers when installing prepayment meters without customers' permission; British Gas agreed a settlement package including £20 million into a redress fund, compensation to affected customers, and writing off up to £70 million of debt for energy customers in vulnerable circumstances, against a proposed £22 million fine1. The government has announced plans to abolish Ofwat and create a new single regulator for water by 20301. No further changes to the October 2023 energy licence conditions have been reported.