Debt Relief Scheme: Statutory Consultation

Consultation description

This is our statutory consultation on introducing Phase 1 of a Debt Relief Scheme (DRS) for customers who have got behind with their energy bills during the energy crisis and may struggle to repay. We propose that this should be implemented in early 2026, subject to the passage of legislation in Parliament to allow sharing of data on customer eligibility for Means Tested Benefits between energy suppliers and the Department for Work and Pensions. This follows a call for input in March 2024, a policy consultation in December 2024, and a policy update working paper in August 2025. 

This consultation and associated documents detail our response to stakeholder feedback and our proposed changes to the Gas and Electricity Supply Licenses, and Electricity Distribution and Gas Transportation Licenses to enable Phase 1 of DRS. We are also publishing Delivery Guidance to support suppliers in their obligation to deliver the scheme. 

We want to achieve good outcomes for customers in energy debt and payment difficulties by: 

• reducing levels of debt 
• providing an opportunity to build relationships between customers and their energy suppliers 
• providing a mechanism by which customer debt accumulated during the gas crisis can be cleared in proportion to the debt levels in suppliers’ customer portfolios 
• reducing, or avoiding an increase in, the future debt allowance, and by doing so reduce the differential between standard credit and direct debit customer rates in the energy price cap 

Who should respond 

We are interested in hearing from:

• suppliers 
• network companies 
• consumer groups and charities

How to respond 

Submit your response to debtconsultations@ofgem.gov.uk by 18 December 2025. Depending on stakeholder feedback, we expect to publish our decision on whether to proceed with the proposed license changes in January 2026.