Ofgem consulted on the proposed Debt Outcome in June 2026, according to its Consumer Vulnerability Strategy progress report published on 21 July 20261. The same report records that the documents published on 23 June will require clear and demonstrable links between supplier actions and consumer outcomes1. The consultation sits within the regulator's wider shift towards outcomes-based regulation, including the Consumer Outcomes set out in its Consumer Outcomes Strategic Direction1.
The report sets out the debt and affordability context the proposals respond to. At the end of 2025, around 58% of consumers who were behind on their bills were in arrears without a repayment plan1. Ofgem states that without support reflecting ability to pay, these customers are unlikely to see their debt position improve1. Average weekly arrears repayments rose from around £7 to £9 per week in 2020 to around £12 to £14 per week in 20251. The average number of weeks to repay debts was lower in 2025, at 107 for electricity and 102 for gas, than in 2020, at 127 and 121 respectively1. Average debt levels fell from around £8 for both electricity and gas in 2022 to around £5 in 20251. Against that, the longest repayment periods lengthened, with an increase from 158 weeks at the end of 2020 to 269 weeks for electricity, and from 130 weeks to 276 weeks for gas in 20251.
The report also identifies billing accuracy and meter access as problems, particularly for households with traditional meters. Inaccurate bills, delayed bills or missing meter readings can make it harder for consumers to understand what they owe, engage with their supplier or agree support that reflects their circumstances1. Ofgem says it will drive improvements in billing standards through both compliance and potentially rule changes1.
"Consulted on the proposed Debt Outcome in June 2026"
The report describes other work in the same area. Ofgem consulted on lower standing charge tariffs in September 2025 and launched a one-year pilot in April 20261. It published a call for input on the Cost Allocation Review in July 20251. It published a letter to suppliers and an accompanying guide for energy suppliers and debt advice providers in January 2026, and reports that supplier practices on Additional Support Credit have changed since an expectations letter on the original policy intent in August 20251. Guidance on the ethical use of AI in the energy sector was published in May 2025 and updated in May 2026, and 24/7 emergency contact requirements were introduced from August 20251.
Why it matters for households
The proposals concern how suppliers identify and treat households that fall behind, which bears directly on whether a home can keep its supply and manage its costs without building unmanageable debt. The report's central finding is that too many customers in debt are not being brought into structured repayment arrangements, and that delivery of support remains uneven across the sector1. For a household, the practical difference lies in whether payment difficulty is spotted early, whether a repayment plan reflects what the home can actually pay, and whether bills and meter readings are accurate enough to show what is owed. Ofgem notes that affordability pressures sit beyond suppliers' direct control, but that suppliers can make further progress through partnerships with debt advice providers, consumer groups and charities, more flexible payment options, earlier use of data to identify payment difficulty, and accurate, easy-to-understand bills1. The report also states that 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 used to target support1.
What happens next
The report says Ofgem will review the Priority Services Register to understand how customers in vulnerable situations are identified and tracked, take forward measures to reduce the amount of debt consumers are building up, and drive improvements in billing standards through compliance and potentially rule changes1. The next cycle of vulnerability focus sessions is planned for early 2027, to align with annual Social Obligations Reporting data1. The report does not give a date for a decision on the proposed Debt Outcome or the proposed billing outcome; that has not been reported1.
Sources1 cited
- Coumer Vulnerability Strategy: Progress Report, ofgem.gov.uk