By Sohaib Shams
The UK government has called on the country’s largest energy suppliers to step up efforts to help households manage record levels of unpaid energy bills before a £2.5bn debt relief scheme takes effect.
Roundtable meeting with major suppliers
Energy minister Polly Billington hosted a roundtable on Thursday with senior leaders from the six biggest suppliers, including Octopus Energy, British Gas and EDF Energy, alongside consumer groups and the trade association Energy UK. The meeting formed part of a wider “circuit-breaker” strategy announced in the chancellor’s budget last month to address household energy debt, which could reach £7bn by year‑end.
Suppliers expected to play crucial role
Billington told executives that suppliers must still play a “crucial role” in tackling problem debt alongside the government’s multibillion‑pound package. Companies are expected to proactively identify customers under financial strain and offer debt payment plans or refer them to advice services.
Smart meters and payment reforms
The government is backing smart meters and smart pre‑pay meters to help households track spending and avoid arrears. Reforms will also require landlords to provide meter readings and moving dates to suppliers when tenants change, addressing the estimated 40% of unpaid bills that accumulate during moves.
Projected savings for all billpayers
Officials estimate the average household currently pays about £50 a year to service unpaid bills across the market. The debt relief scheme and preventive measures could save all households an average of £130 over the next decade.
Consumer groups welcome focus on prevention
Citizens Advice energy director Gillian Cooper said the initiative must not only tackle existing debt but also include protections to prevent households from falling into debt again, especially with typical annual bills predicted to rise in January.
