Letter on Additional Support Credit bad debt allowance
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On 25 August 2023, we published our decision to introduce a specific allowance into the price cap for bad debt costs associated with Additional Support Credit (ASC), from 1 October 2023 for 12 months initially. As the allowance becomes available in the cap, we have written to energy suppliers to restate our expectations around the appropriate use of the ASC bad debt allowance to support customers, and our expectations on ASC practice more broadly.