News - End Fuel Poverty Coalition

Ofgem responds to energy debt crisis as MPs demand action

Ofgem has today announced plans to “reset and reform” how energy debt is handled, including a new Debt Relief Scheme that aims to write off up to £500m of historic arrears for around 195,000 households.

The regulator says the first phase will focus on people on means-tested benefits with debts built up during the energy crisis, alongside new rules to support customers in difficulty and reforms designed to stop debt building up in future.

Ofgem also plans trials to change how energy accounts are set up when people move home, and will introduce a new “Know Your Rights” guide for consumers. The full consultation will be published in the coming weeks, with the scheme expected to launch in early 2026.

A spokesperson for the End Fuel Poverty Coalition, commented:

“We welcome Ofgem recognising the scale of the energy debt crisis and we are broadly supportive of the Debt Relief Scheme, but announcing plans before the consultation is even published raises questions about whether they’ve been bounced into action by this week’s Energy Select Committee report.

“In this report, MPs got it right: this energy debt crisis needs bolder, faster action and must be funded through excess energy industry profits, not pushed back onto struggling households.

“Bill-payers have already handed over hundreds of millions to cover debt recovery, yet energy debt has spiralled to £4.4bn. The current system has clearly failed, and unless Ofgem is given the powers to protect consumers properly, this crisis will keep repeating every winter.”

MPs back major reforms to energy bill support

MPs on the Energy Security and Net Zero Committee have backed a series of reforms to make the energy system fairer and support households facing a fifth winter of high bills.

In a major report on tackling the energy cost crisis, MPs recommended a permanent energy debt relief scheme funded through energy sector excess profits, automatic support for vulnerable households, a social tariff for energy and reforms to the Warm Home Discount.

The Committee also called for urgent action to fix unfair standing charges, improve data sharing to target support and overhaul Cold Weather Payments to ensure help reaches those who need it when temperatures drop.

Crucially, the Committee echoed the Coalition’s warnings about the growing energy debt crisis and proposed a structured, long-term solution to write off unpayable arrears without passing costs onto billpayers.

It also urged the Government and Ofgem to act quickly to rebuild trust in the energy market, strengthen consumer protections and ensure households are not penalised for reducing gas use as the energy system transitions.

A spokesperson for the End Fuel Poverty Coalition, commented:

“This report should be used to mark a turning point in the fight to end the energy cost crisis. The cross-party group of MPs have recognised what millions of households already know – our energy system has been stacked against people struggling to heat their homes and urgent change is needed.

“We are particularly pleased that MPs have backed the principle of energy debt relief funded through excess profits in the sector, alongside a social tariff, reforms to standing charges and improvements to the Warm Home Discount and Cold Weather Payments. These are landmark recommendations that could protect the most vulnerable.

“As this report makes clear, warm homes must be treated as a public health priority, with fair pricing, modernised winter protections, social tariffs and stronger rights for renters.

“If the Government is serious about implementing change, the Warm Homes Plan announced next month must be the first step. That means a £13.2 billion plan to create warmer and safer homes for those most in need, independent quality checks, skilled green jobs, trusted local advice services and prioritisation of the lowest-income households in the coldest homes.”

In responses to Government consultations, charities and fuel poverty experts have set out the key tests the Government’s forthcoming Warm Homes Plan and Fuel Poverty Strategy must meet. These include:

Treating warm, safe housing as a public health priority and retain the target to end fuel poverty by 2030
Adopting a 10% fuel poverty measure (after housing costs)
Committing to a 10-year national retrofit programme, agreed across parties, backed by skilled jobs, apprenticeships and national standards
Prioritising the Worst First — low-income households in the coldest, least efficient homes
Guaranteeing independent retrofit assessment, performance monitoring and consumer protections
Providing free, trusted local advice services and one-stop-shops for households
Funding delivery through public spending, not new levies on bills
Introducing targeted financial support including modernised cold weather payments and social tariffs
Empowering local authorities with data access and funding to lead street-by-street schemes
Protecting tenants from “retrovictions” and unfair rent rises

The spokesperson added:
“Warm homes are a basic right. This must be the moment the Government finally commits to a long-term plan to end fuel poverty — not just improve averages or fund short-term schemes.

“We need a decade-long Warm Homes Plan that delivers real-world warmth, safety and affordable bills, backed by independent quality checks, trusted advice and proper protection for tenants and consumers.

“After years of delays and stop-start programmes, it’s time to get on with delivery and ensure support reaches those in deepest need first.”

ENDS

The full report can be read here: https://publications.parliament.uk/pa/cm5901/cmselect/cmesnz/736/report.html

The End Fuel Poverty Coalition’s evidence to the inquiry can be read online.

Wind power set for further investment

The government has unveiled its long-awaited Contracts for Difference “AR7 budget” for offshore wind, with £900 million for fixed projects and £180 million for floating wind.

The announcement comes as new UCL research shows wind power has already saved UK consumers billions, cutting wholesale prices and shielding homes from volatile gas markets.

Yet with strike prices of £113/MWh for fixed wind and £271/MWh for floating, concerns remain that bills may increase, while ministers insist that the government “won’t buy at any price.”

A spokesperson for the End Fuel Poverty Coalition, commented:

“The North Sea is running out of gas and new gas power plants could take the best part of a decade to even get off the ground. Britain simply can’t rely on fossil fuels for its energy security.

“That’s why renewables are so important. They cut our dependence on gas imports and prices and create jobs where they’re needed most. But this transition has to be managed fairly.

“The public deserve to clearly see how they benefit, through lower electricity prices, greater transparency on how the strike prices work, and clear profit caps that ensure developers don’t cash in at consumers’ expense.”

Blair Institute’s ‘reset’ plan risks powering delay, not progress

A new report from the Tony Blair Institute for Global Change backs calls for a “reset” of the UK’s electricity strategy, but critics warn it could play into the hands of those seeking to slow down clean-power investment.

A spokesperson for the End Fuel Poverty Coalition welcomed “any serious discussion about how to make our energy transition smarter, faster and fairer,” but also commented:

“Given that by 2027 the North Sea will no longer be able to provide enough gas to heat our homes, this report must not become a pretext to delay vital moves to improve energy security and bring down bills.

“Scrapping contracts for green power, weakening support for renewables or backing away from decisive grid upgrades will continue to keep households locked into volatile fossil-fuel markets and higher bills.

“The report’s conclusions also raise questions about the Tony Blair Institute’s funding and affiliations. As reported by The Guardian, the Institute has received financial support from governments and entities linked to fossil fuel-producing states, including Saudi Arabia and the United Arab Emirates.”

Ed Matthew, UK programme director for the independent climate change think tank E3G said:

“The only solution to get off the gas price rollercoaster is to get off gas.

“Our research shows that it is possible for the Government to reach its 2030 clean power target whilst reducing electricity bills by more than £200.

“But that requires urgent action by government to implement cost cutting policies, including moving levies off electricity bills into the Exchequer [general taxation].”

Jess Ralston, energy analyst at the Energy and Climate Intelligence Unit (ECIU), added: “The public may be more interested in their energy bills than what percentage of clean power the UK reaches in 2030, but renewables are already lowering wholesale power prices by around a quarter, or £25 per megawatt hour.”

Half-hour billing reform must not harm vulnerable households

Some energy customers will soon see the benefits of a switch to a new system for energy bills that will lead to more accurate and transparent bills, cost savings through new ‘time-of-use’ tariffs, and better integration of renewable energy sources.

The Market-wide Half Hourly Settlement (MHHS) programme is designed to help modernise the UK’s energy sector by providing more detailed consumption data – taking readings from customers’ electricity meters every 30 minutes – instead of the current monthly frequency.

However, concerns have been raised about the impact on vulnerable households [letter to Ofgem pdf] and the discriminatory nature of only making the tariffs available on smart meters.

A spokesperson for the End Fuel Poverty Coalition, commented:

“We must ensure that electricity pricing is fair and that everyone can access cheaper ‘time of use’ tariffs.

“Millions of people have already been left behind in the smart meter rollout, and it is vital that the energy industry urgently fixes problems with existing meters and properly compensates customers for failures.

“Outstanding smart meter faults can block access to cheaper tariffs altogether, meaning some households are penalised week after week through no fault of their own.

“The biggest issue we see is when smart meters don’t communicate with suppliers — a problem that lies with the Data Communications Company (DCC) who have been paid millions from our bills yet still don’t operate a fully working system.

“And with North Sea gas production in steep decline and the UK set to rely on imports for 94% of its gas by 2050, we must be accelerating efforts to reform electricity pricing — not embedding unfairness.

“Access to smart tariffs must be universal, and smart meter failures must not become a reason why the most vulnerable pay more for energy.”

Energy bosses warn of further bill increases in evidence to MPs

Electricity prices could increase by a fifth, according to evidence given to MPs by energy company bosses.

The “big six” energy suppliers were questioned by the House of Commons Energy Security and Net Zero Select Committee about energy bills.

A spokesperson for the End Fuel Poverty Coalition, commented:

“It’s highly concerning that energy bosses have painted such a bleak outlook for energy bills in coming years.

“With over 12 million households struggling with the cost of heating and energy debt at record levels, it’s clear that electricity pricing must be fairer, standing charges reduced and that the Government must look at how any vital investment in energy infrastructure is paid for.

“Ministers and the regulator should set out a clear long-term pathway so that the public knows what the fixed costs of the grid are likely to be, what schemes will be available to help improve energy efficiency and what financial support will be in place to help those in fuel poverty.

“The nation’s energy system is going through huge changes to improve energy security, meet demand* and bring down the cost of generating energy. But as this change happens, the Government mustn’t forget about households struggling through a fifth winter of high bills.”

The End Fuel Poverty Coalition’s written evidence to MPs on the Committee Inquiry [pdf] highlighted how the energy system is unfair by design — with standing charges, supplier failures and gas-linked pricing hitting low-income households hardest.

The evidence recommended:

Fairer pricing that reflects cheap renewables
A fully funded £13.2bn Warm Homes Plan
Social tariffs & lower standing charges
A regulator that prioritises bringing down energy bills

*Even the lowest prediction by the National Energy System Operator suggests that electricity demand will increase by 93% between now and 2050.

Lessons must be learned from the NAO’s damning insulation report

The National Audit Office has found that poor oversight of the Energy Company Obligation (ECO) allowed sub-standard contractors to install faulty insulation in thousands of homes.

98% of homes that had external wall insulation installed under the schemes run by the previous government have problems and 29% of homes that were given internal insulation also need it fixing.

This amounts to around tens of thousands of installations that may have been defective, leaving households in cold, damp conditions.

Anyone affected by the scandal should contact the Ofgem ECO helpline on 0808 169 4447 or ECOhelp@ofgem.gov.uk.

A spokesperson for the End Fuel Poverty Coalition commented:

“The report reveals a system that has let cowboys through the front door, leaving thousands of victims living in misery and undermining public trust in efforts to tackle the cold damp homes crisis facing many households.

“Insulation and ventilation, when done properly, are among the safest and most effective ways to bring down energy bills and keep people warm. But sub-standard delivery and weak oversight by the last Government has turned what should have been a national success story into a cautionary tale.

“Now we need to fix the system, not abandon it.

“The government’s Warm Homes Plan must guarantee quality, with properly trained installers, independent inspections and rapid remediation if things go wrong.

“Only by getting insulation right, alongside a clear plan to move homes off volatile gas prices and targeted financial help for those struggling with their bills, can we end the scourge of cold, damp homes once and for all.”

James Dyson, Senior Researcher at E3G added:

“Every person who has been failed by this scheme deserved better; a warmer home which is cheaper to heat, delivered by competent tradespeople.

“Instead, the Conservatives’ time in office has delivered the British public yet another systemic failure in our public services. Everyone washed their hands of responsibility, from the government watchdog to energy companies and cowboy builders.

“The new government has a chance to put things right, it must move urgently to help the people affected to repair their homes at no extra cost and put in place high insulation standards to ensure this never happens again.”

Meanwhile Fuel Poverty Action’s Jonathan Bean said:

“This scandal exposes shocking levels of negligence by Government, Ofgem, Trustmark and energy firms. They have allowed rogue contractors… to exploit the £4 billion added to our energy bills [to pay for the scheme], and damage the homes of tens of thousands of mostly vulnerable people.

“Instead of the warm homes and lower bills Government promised, people had their homes and lives destroyed.

“Now [we see] a weak Government response, allowing the scheme to continue, only checking some homes and measures, and fixing even fewer.

“Decisive action is needed instead. All homes must be checked, and all damage and faults fixed. Not just insulation, also roofs that have been damaged by solar panels and heat pumps that don’t work properly. ECO4 should be halted and replaced by a scheme with proper quality control and protections for residents. Victims must not be left suffering through another winter in cold, damp, damaged homes whilst cowboy contractors enjoy their huge profits.”

Anyone with poorly installed ECO4 work in their home can also contact Fuel Poverty Action via its website to take action.

Chief executive of charity Severn Wye, Sandy Ruthven MBE, commented:
“The figures are eye-watering but by themselves don’t tell the full story of fuel poverty and the experience of day-to-day living in a cold, damp and unhealthy home.

“External wall insulation is fitted to homes that have solid walls. Done well, it keeps heat in and cold out, but done badly it creates ideal conditions for damp and mould to grow inside. This is an unsightly nuisance at best but can be an immediate threat to health and in extreme cases can kill.

“The report’s findings that almost all external wall insulation and nearly one third of internal wall insulation need repair is hard to comprehend. But we know from the calls we receive into our advice line and home visits, that coping with shoddy installations has a devastating impact on health and wellbeing.”

Gas and electricity winter outlook highlights fragile energy security

A new report from National Gas that reveals a decline in Britain’s gas storage capacity, driven by the shutdown of the Rough site which is owned by Centrica, increases the UK’s reliance on imported liquefied natural gas (LNG) during periods of high demand.

Recent deals struck by Centrica means the firm controls c.10% of gas needs and also now owns the Grain LNG import facility in Kent.

The National Energy System Operator’s winter outlook report suggests that electricity supplies for the winter looked mostly healthy, but with a risk of some “tight days”.

A spokesperson for the End Fuel Poverty Coalition commented:
“Britain’s energy security should never depend on the commercial decisions of one private company. Yet with Centrica controlling vital gas infrastructure and imports, the country is now exposed to their boardroom choices.

“By refusing to refill Rough ahead of winter, Centrica has effectively weakened one of Britain’s key defences against cold snaps and price spikes. This leaves households more reliant on expensive imported gas and more vulnerable to market volatility.

“This also highlights that, even if new gas fields are approved, the North Sea will be unable to produce enough gas to cover our home heating needs by 2027 – leaving the country reliant on imports.

“The Government must not leave our energy security to chance.

“Alongside treating gas storage as critical national infrastructure, we also need to continue the shift away from gas by investing in homegrown renewable power – so we’re no longer at the mercy of fossil fuel markets.

“But to support this shift, we must also ensure the electricity system is ready and reform electricity pricing. While National Grid expects sufficient capacity this winter, there will still be tight days where supply and demand are finely balanced. Expanding renewables and electricity supply is essential if we are to meet future demand from cleaner heating and ensure a secure, affordable energy system for all.”

Scrapping UK climate law will not reduce energy bills

Plans by the Conservative Party to replace the Climate Change Act have come under fire for locking Britain into costly gas imports at a time when North Sea reserves are rapidly running out.

Environmental groups also condemned the move, with the E3G think tank describing it as “a monstrous act of economic and environmental vandalism.”

A spokesperson for the End Fuel Poverty Coalition, commented:

“Kemi Badenoch says that the Conservatives want to put ‘economic growth and cheap energy first’, but there is no way to lower bills or energy security by prolonging our dependence on gas.

“By 2027, the UK will not be able to produce enough gas to heat our homes. And, even if new gas fields are approved, by 2050 the country will be left almost entirely reliant on gas imports as the level of reserves in the North Sea gas basin continues to deplete.

“Keeping households hooked on gas – which we will have to import at global prices from countries such as Trump’s America and Qatar – will only increase the profits of global firms and increase the misery of people unable to afford the sky-high prices.”

Labour Party conference ends with focus on energy bills

The Energy Secretary has announced initiatives to try and bring down energy bills, boost green jobs and ban fracking at the Labour Party Conference in Liverpool.

On the day that the average energy bill rose by 2.21% year-on-year rise (now 68% or £713 a year higher than in the winter of 2020-21), Government ministers have pointed to the work to deliver more renewables and “in the coming weeks” an announcement on the biggest home upgrade programme in British history.

A spokesperson for the End Fuel Poverty Coalition, commented:
“The Government is right to fight for homegrown, clean energy. The North Sea is running dry – even with new fields, the UK won’t produce enough gas to heat our homes by 2027. What’s more, fracking is unsafe, unpopular and unable to meaningfully reduce energy bills.

“So ramping up clean power is the only way to bring our bills down in the long term while providing a secure energy future.

“But as we approach a fifth winter of the energy bills crisis, households are struggling to cope with bills which remain hundreds of pounds a year above where they were in winter 2020/21 and energy debt is now at record levels. Meanwhile, new analysis from the Common Wealth think tank suggests that around 24% of every household energy bill is taken as profit by the energy industry.

“This is why we need action to provide more support to those who need it the most alongside improved energy efficiency and lower bills for households now.”