The Winter 2023 Voluntary Debt Commitment came into force in October 2023 and runs until March 2024, Energy UK has set out. It is a set of voluntary actions that domestic energy suppliers have agreed to take above their regulatory obligations, developed with Citizens Advice and Ofgem1.
Fourteen suppliers have made the commitments: British Gas, E, Ecotricity, EDF Energy, E.ON Next, Good Energy, Octopus, Ovo, Rebel Energy, Shell Energy Retail Limited, Scottish Power, So Energy, Utilita and Utility Warehouse1.
Energy UK describes the commitment as "a combination of good practice and crisis measures for the concerning position customers are in for winter 2023"1. The measures cover fair treatment of customers in debt, financial assistance, help to lower bills, accurate billing and a national communications campaign1.
"The Winter 2023 Voluntary Debt Commitment will be in place from October 2023 until March 2024."
On the scale of the problem, Energy UK cites Citizens Advice estimates that UK households are behind on bills by £22 billion, and warns the figure could be much higher, with energy debts and council tax arrears now the most encountered debt types. Citizens Advice data shows the number of people seeking support with energy bills rose by 112% in the first four months of 2023 compared with the same period in 2020. Ofgem's most recent data puts customer debt and arrears in energy at around £2.6 billion, double the level at the start of 20201.
The financial assistance suppliers are offering is set out supplier by supplier on the Energy UK website and may include enhanced debt write-off schemes and hardship funds, enhanced funding to charity partners and frontline organisations, and reducing or waiving standing charges over winter for certain customers1. Under the Energy UK Vulnerability Commitment, which Energy UK says covers 95% of the market, suppliers have appointed a Vulnerability Champion at board level or equivalent1.
| Commitment area | What suppliers have agreed |
|---|---|
| Fair treatment | Staff training and debt communications reviewed; repayment plans reflect ability to pay, including payment holidays where appropriate; High Court enforcement and CCJ policies signed off at board level1 |
| Financial assistance | Debt write-off schemes, hardship funds, funding to charity partners, and reduced or waived standing charges over winter for certain customers1 |
| Lower bills | Energy efficiency support beyond supplier obligations; demand flexibility service signed up to by suppliers representing 75% of the market1 |
| Accurate bills | Easier meter readings, staff training on billing, smart meter trials and integration of smart meter data1 |
Alongside the commitment, Citizens Advice and Energy UK have developed common messaging for people falling behind on energy bills, under the campaign name Speak. Seek. Save. Energy UK says the campaign will be supported by suppliers, Ofgem and the Government1.
Why it matters for households
The commitment sets out what a household in arrears can expect from a participating supplier over winter, beyond what regulation already requires. Energy UK states that suppliers must consider a customer's circumstances and agree an affordable payment plan based on ability to pay, and that customers can ask for a review of payments and debt repayments, payment breaks where available, or more time to pay1. It also states that suppliers will consider information and third-party authority forms from a customer's chosen credible debt or consumer body, including FCA-authorised debt advisors1.
For a home's energy independence, the practical effect is on continuity of supply and on how debt is managed. Energy UK notes that prepayment meters are a useful tool to help customers manage debt, and that customers on smart prepayment meters can receive additional support more quickly and effectively than on legacy meters1. Emergency credit, friendly-hours credit on smart meters and additional support credit are described as routes to keep a household on supply or return it to supply where appropriate, with temporary credit usually repaid at the next top-up unless spread through a payment plan1.
The commitment is voluntary and supplier-specific. Energy UK states that each supplier, with its different customer base, is best placed to determine how it meets these obligations and uses the voluntary initiatives1. The detail of what each supplier offers is published on the Energy UK website rather than in the commitment itself1.
What happens next
The commitment runs until March 20241. Energy UK has not reported what will replace it after that date.
Sources1 cited
- The Winter 2023 Voluntary Debt Commitment - Energy UK, energy-uk.org.uk