We welcome Ofgem’s wide-ranging call for input on affordability and debt, in particular Ofgem’s recognition that the evidence received may form the basis of recommendations to Government. Although our response sets out the steps we would like to see Ofgem taking to improve the situation for those on low incomes, affordability and debt are not issues that Ofgem can solve alone. Amongst other measures, we call on the Government to:

  • Introduce a discounted tariff for those who are unable to afford the energy they need to keep them safe and well
  • Introduce a temporary Help to Repay scheme to help those in energy arrears to get out of debt
  • Scrap VAT on energy bills

We are calling on Ofgem to:

  • Eliminate the standard credit premium and commit to ensuring that new poverty premiums are not created
  • Reduce standing charges
  • Tackle back-billing so that consumers do not have to face shock bills going back for up to
    a year

Finally, we would like to see the Government, Ofgem and energy suppliers working closely with people who are on low incomes to make sure the energy market works for them.

See our full response here