Citizens Advice published its response to Ofgem's technical working paper on the proposed Debt Relief Scheme (DRS) on 3 September 2025. The charity said it broadly supports the scheme's objectives and welcomed Ofgem's adoption of some of its recommendations, including a phased approach to implementation1.
The response states that the scheme has the potential to deliver significant benefits for consumers and suppliers "by reducing debt in the energy market, supporting vulnerable households, and improving relationships and trust between consumers and their suppliers"1. Citizens Advice said it still has unanswered questions and wants "greater clarity on eligibility and engagement to determine consumers who will qualify for the scheme"1.
"We are also concerned about the lack of information on the second phase of the scheme. We understand that it will be more complex"
The charity urged Ofgem to begin consulting on that second phase as soon as possible, to work through complications with stakeholders and suppliers and "prevent any further delays"1. It said it is mobilising a new energy debt advice service that will increase access to FCA-accredited debt advice over time1.
Citizens Advice cited polling of 4,270 GB energy bill paying adults, conducted online by Yonder Data Solutions between 31 July and 6 August 2025. It found 38% are worried about paying their energy bills this winter and 6% are in debt1. The charity said energy prices remain volatile and higher than before the energy crisis, and that any delay to the scheme increases the risk of "debt enforcement, prepayment meter disconnection, energy rationing, and deepening debt"1.
It argued the scheme should be a one-off intervention accompanied by long-term targeted bill support and further action to improve the energy efficiency of homes1.
Why it matters for households
The Energy Debt Relief Scheme is intended to reduce arrears held by households that cannot pay, which affects both the size of a home's outstanding balance and the terms on which a supplier deals with it. Eligibility rules decide which households qualify, and those rules have not been set out in the working paper as described here1. For a household carrying energy debt, the practical questions are whether it falls inside the qualifying group and when any relief would arrive; on both, Citizens Advice says clarity is still needed1.
The charity's position is that debt relief alone does not settle affordability, and that bill support and home energy efficiency measures are needed alongside it1. For a household, that distinction matters: clearing an existing balance changes the starting point, while the cost of ongoing consumption and the fabric of the home determine whether debt recurs. The Energy Bills and Energy Independence guide sets out how arrears, payment methods and supplier practice bear on a household's control over its own energy costs.
Citizens Advice is one of the statutory energy consumer bodies in Great Britain, and its evidence on debt levels feeds into Ofgem's decision making. The DRS itself sits within the wider consultation process through which energy rules are proposed and changed.
What happens next
Citizens Advice has asked Ofgem to begin consulting on phase two of the scheme as soon as possible1. No date for that consultation, and no date for the scheme's launch, has been reported.