Citizens Advice published its response to Ofgem's consultation on resetting the energy debt landscape on 20 February 2025, backing the regulator's proposals for a relief scheme for debt caused by the energy crisis1. The charity said it would work with Ofgem, the government, suppliers, networks and other consumer groups so that the scheme is ready to launch ahead of winter 2025/261.
The response supports the scheme in general but sets out three changes. Citizens Advice wants the design simplified to improve deliverability, wants Ofgem to focus tightly on debt caused by the energy crisis, and disagrees that consumers should carry the full financing costs1. It argues there is a credible case for energy networks to cover the financing at zero interest, using windfalls from interest rates having been higher than expected in recent years1. It also asks Ofgem to publish more evidence on the scheme's costs and benefits1.
"We disagree that consumers should pick up the full financing costs of the scheme"
The charity says the energy crisis is not over for millions of people, with prices still volatile and above pre-crisis levels1. It cites projections that prices will rise in April, are likely to rise further in July, and are not likely to fall substantially before the scheme's introduction in autumn 20251. Energy debt remains the most common type of debt its advisers deal with, and in 2024 it helped more people with energy debts than in any previous year, with December higher than the same period in any other year1.
Citizens Advice says the scheme must be accompanied by long-term targeted support through a reformed Warm Home Discount, and by a long-term increase in debt advice capacity1. It also sets out plans to expand access to debt advice through a proposed debt advice service building on the consumer service helpline1. Ofgem's own figures for the scheme, and the government's position on financing, have not been reported in this response.
Why it matters for households
The energy debt relief scheme is intended to write off a defined pool of crisis-era arrears rather than leave households repaying them indefinitely. Who pays the financing costs decides whether that relief is funded through network charges, and therefore bills, or absorbed elsewhere. For a household carrying arrears, the practical questions are which debts qualify, how the relief interacts with an existing repayment plan, and whether credit records are corrected afterwards. None of those design details are settled in this response. The charity's warning on April and July prices points to a gap between when debts are incurred and when relief arrives, which is where crisis funds and hardship grants currently sit. Citizens Advice is one of the energy consumer bodies that advise households on help with energy bills and debt in England.
What happens next
Citizens Advice says it will keep working with Ofgem on debt management standards and on expanding debt advice1. It wants the scheme ready to launch ahead of winter 2025/26, with introduction in autumn 20251. Ofgem has not set out a decision date in this response. The consultation sits within Ofgem's wider process for energy consultations and how policy is made; the regulator's role is set out in Ofgem: what the energy regulator does.