Ofgem published a letter to energy suppliers and an accompanying Guide for energy suppliers and debt advice providers in January 2026, after it was unable to agree a voluntary Code of Practice with suppliers1. The regulator set out the move in its Consumer Vulnerability Strategy: Progress Report, published on 21 July 2026, which reviews progress against the strategy it refreshed in April 20251.
The report states that the first progress report focuses mainly on the first two themes of the strategy and considers supplier governance, reflecting the current debt and affordability context1. Ofgem said it found promising practice across the sector but that delivery remains uneven, with some approaches well developed in parts of the market and others still emerging or not yet supported by clear outcome evidence1.
"we instead published a letter to suppliers and accompanying Guide for energy suppliers and debt advice providers in January 2026"
The report gives figures on debt and repayment. At the end of 2025, around 58% of consumers who were behind on their bills were in arrears without a repayment plan1. The average number of weeks to repay debts was lower in 2025 than in 2020: 107 weeks for electricity and 102 for gas, against 127 and 121 respectively in 20201. Average debt levels fell from around £8 for both electricity and gas in 2022 to around £5 in 20251. Against that, the report records an increase in the average time to repay debt for customers on repayment plans, from 158 weeks at the end of 2020 to 269 weeks for electricity, and from 130 weeks to 276 weeks for gas in 20251. Weekly repayment amounts rose from around £7 to £9 per week in 2020 to around £12 to £14 per week in 20251.
The report also lists other work. Ofgem consulted on lower standing charge tariffs in September 2025 and launched a one-year pilot in April 2026; consulted on the proposed Debt Outcome in June 2026; published a call for input on the Cost Allocation Review in July 2025; published guidance on the ethical use of AI in the energy sector in May 2025 and updated it in May 2026; and introduced 24/7 emergency contact requirements from August 20251. It says supplier practices on Additional Support Credit changed after an expectations letter on the original policy intent in August 20251.
| Measure | Earlier figure | Later figure |
|---|---|---|
| Average weeks to repay debt, electricity | 127 (2020) | 107 (2025) |
| Average weeks to repay debt, gas | 121 (2020) | 102 (2025) |
| Average debt level, electricity and gas | around £8 (2022) | around £5 (2025) |
| Average weeks to repay on repayment plans, electricity | 158 (end 2020) | 269 (2025) |
| Average weeks to repay on repayment plans, gas | 130 (end 2020) | 276 (2025) |
| Weekly repayment amount | around £7 to £9 (2020) | around £12 to £14 (2025) |
Why it matters for households
The letter and guide sit within Ofgem's regulation of the energy market, and the report's figures describe how household debt is handled by energy suppliers. The report says too many customers in debt are not being brought into structured repayment arrangements, and that without support reflecting ability to pay, those customers are unlikely to see their debt position improve1. It also flags billing accuracy and meter access, particularly for those with traditional meters, where inaccurate or delayed bills and missing readings can make it harder to understand what is owed and to agree support1.
For a household, the practical effect is that the terms on which arrears are managed, and the speed at which a supplier identifies payment difficulty, shape how quickly a debt position stabilises. The report notes that identification of consumers in vulnerable situations can remain too reactive, particularly for less engaged consumers1. It also says Priority Services Register coverage is a useful signal but not a sufficient measure of success, and that concerns have been raised about how consistently needs are recorded and how effectively that data is used1. Where a household is in dispute with a supplier, the complaints and redress routes and the work of consumer bodies such as Citizens Advice are the channels the report points to through its references to debt advice providers, consumer groups and charities1.
What happens next
The report sets out recommendations for suppliers and for Ofgem, including a review of the Priority Services Register, measures to reduce the amount of debt consumers are building up, and improvements in billing standards through compliance and potentially rule changes1. The next cycle of focus sessions is planned for early 2027, to align with annual Social Obligations Reporting data1.
Sources1 cited
- Coumer Vulnerability Strategy: Progress Report, ofgem.gov.uk