Ofgem published a letter on 25 August 2025 setting out its regulatory expectations on suppliers' use of Additional Support Credit (ASC), the credit that prepayment customers in vulnerable situations can be offered when they have self-disconnected or are at risk of doing so1. The letter, signed by Charlotte Friel, Director of Retail Pricing and Systems, clarifies that ASC is temporary emergency support rather than ongoing affordability help, and forms part of the regulator's wider Debt Strategy work1.
The ASC rules were introduced in 2020 and require suppliers to offer additional credit to vulnerable prepayment customers who have self-disconnected or are at risk of doing so1. Ofgem said the amount and instances of ASC provision have risen considerably since the beginning of the gas crisis, from around £4m a month to between £8m and £18m a month from September 2022, with seasonality peaks1. The regulator said ASC is not intended as a tool to provide ongoing affordability support, particularly where continuous provision leads a consumer into an unsustainable level of debt1.
The letter sets out expectations on how individual cases should be handled. Ofgem said suppliers should assess each offer or request for ASC on an individual basis, based on engagement with the customer, with the value, frequency and repayment terms set according to the severity of the situation and ability to pay1. Consumers are expected to pay back the credit at a rate appropriate to their circumstances and consistent with the Ability to Pay rules1.
"We expect suppliers to assess each offer or request for ASC on an individual basis."
Suppliers can consider limiting or rejecting ASC where they believe a customer may be misusing credit, which Ofgem said could include failing to adhere to agreed repayment terms without further engagement, or providing false information about vulnerability status or financial hardship1. Any suspected misuse must be investigated thoroughly and decided case by case, and suppliers must record clear justification for decisions taken, including evidence for why ASC was judged unsuitable1. Where ASC is refused, suppliers must consider and should offer support with long-term solutions, such as signposting to a free debt advice service, sustainable repayment plans, help with energy efficiency measures, income maximisation, or reconsidering whether prepayment is the most suitable payment method1.
| Element of the letter | What Ofgem sets out |
|---|---|
| Basis of assessment | Each offer or request assessed individually, on engagement with the customer1 |
| Repayment | Paid back at a rate appropriate to circumstances, consistent with Ability to Pay rules1 |
| Suspected misuse | Limiting or refusing ASC possible; each case investigated and decided individually1 |
| Record keeping | Clear justification recorded, including evidence where ASC was found unsuitable1 |
| Refusals | Long-term solutions considered and offered, such as debt advice signposting or repayment plans1 |
Why it matters for households
ASC is the route by which a household on a prepayment meter that has run out of credit, or is close to it, can be given emergency credit it would not otherwise receive. The letter confirms that this support is meant to be temporary, and that repayment is expected at a rate suited to the household's circumstances1. For a home trying to keep supply on without building unmanageable debt, the practical effect is that the credit is a stopgap, and that suppliers are expected to look at longer-term options where hardship is ongoing1. The letter also confirms that suppliers may ask for more information about a customer's circumstances, and that any treatment of customers should be proportionate and fair1. Ofgem said it is open to further discussion on vulnerability verification, including when it may be appropriate to ask for verification and what would be appropriate to request as evidence1. The annex lists good practice Ofgem has observed, including clear staff policies and training, holistic support offered at the first point of contact, escalation triggers for deeper assessment, and approaches to identifying vulnerability such as self-identification routes and data analytics1.
What happens next
Ofgem said it intends to publish an update to its priorities and work programme in the Autumn1. It expects that update to cover a controlled approach to credit in the retail market, including the roles of different payment methods and how and when financial support should be offered; tackling system inefficiencies and incentives that might mean customers with the means to pay avoid paying their fair share or are not incentivised to engage with their supplier; and improving customer trust and engagement to secure better debt outcomes1. No date beyond the Autumn has been reported.