Energy UK published its Winter 2024 Commitment on 20 November 2024, setting out what 15 supplier signatories covering almost the entire market will do for household customers. The commitment applies from 1 October 2024 through to 31 March 20251.
The trade body said suppliers' overall commitments to additional support for customers over winter 2024/2025 stand at over £500 million1. That figure covers the estimated supplier allocation of voluntary support from the majority of the domestic energy supply market between October 2024 and April 2025, and excludes statutory programmes such as the Energy Company Obligation and the Warm Home Discount, accounting debt write-offs, customer service spend and additional support credit1.
Support varies by company. Energy UK lists possible forms of assistance as credit on bills or prepayment meters, enhanced debt write-off schemes and hardship funds, enhanced funding to charity partners and frontline organisations, reducing or waiving standing charges over winter for certain customers, and access to energy-saving devices and technology1.
On debt, the commitment says suppliers will continue to proactively identify and support customers struggling to pay and ensure repayment plans reflect their ability to pay, including payment holidays where appropriate. Policies for High Court enforcement and County Court Judgement actions for debt cannot be signed off unless agreed at board level or equivalent. Suppliers will fully consider information including budgets, affordable payment offers and prepared Standard Financial Statements, and third-party authority forms, from a customer's chosen credible debt or consumer organisation, including FCA-authorised debt advisors1.
"Energy suppliers' overall commitments to additional support for customers during this coming winter (2024 / 2025) stands at over £500 million."
Energy UK cites Ofgem data showing a record £3.7 billion of debt and arrears owed to energy suppliers, an increase of over £1.5 billion since the start of 2023. The average household in arrears, meaning those without an arrangement to repay, owes over £1,500 on electricity and over £1,300 on gas1.
Separately, 13 suppliers representing more than 95% of UK homes are signed up to Energy UK's Vulnerability Commitment, in place since 2020. That is a voluntary commitment over and above existing regulation, with signatories scrutinised by an independent panel each year and required to evidence their activities. Those suppliers commit to only use High Court Enforcement Officers to recover debts where appropriate for a vulnerable customer, and to track how vulnerabilities may change over time1.
| Commitment | Signatories | Coverage |
|---|---|---|
| Winter 2024 Commitment | 15 suppliers | Almost the entire market |
| Vulnerability Commitment | 13 suppliers | More than 95% of UK homes |
Suppliers are also partners in the Speak, Seek, Save campaign led by Citizens Advice, which started on 1 October, with campaign information translated into ten commonly spoken languages1.
Why it matters for households
The commitment sets out what a household in difficulty can expect from its supplier over the winter, and it is voluntary rather than a regulatory requirement. The practical routes to help are financial assistance through supplier funds, repayment plans based on ability to pay, and access to Breathing Space, a government scheme giving legal protections from creditor action for up to 60 days, or as long as a mental health crisis lasts1. Energy UK says suppliers can only help if they know about a customer's situation1.
For a home's energy independence, the relevant part is the debt position. The £3.7 billion of arrears and the average balances cited are money owed on top of ongoing bills, and repayment plans that stretch a household's budget affect what is left for other costs. The commitment also covers monitoring of prepayment meter customers at risk of self-disconnection, which is the point at which a home loses supply1.
What happens next
The commitment runs to 31 March 20251. Energy UK states that an enduring solution is needed to address the wider challenge of affordability, and that the industry welcomes the Government and Ofgem's focus on customer debt1. No further dated steps are set out in the commitment.
Sources1 cited
- Energy UK's Winter 2024 Commitment - Energy UK, energy-uk.org.uk