National Energy Action response to Ofgem’s Debt Relief Scheme Working Paper

National Energy Action welcomes the intent and structure of the latest Debt Relief Scheme (DRS) proposals. The working paper sets out a more inclusive and well-defined framework than previous iterations, particularly in its recognition of the realities of fuel poverty and the barriers faced by disengaged consumers. The phased approach is a positive and pragmatic step that creates a clearer pathway for delivering timely relief to those in deepest need.

Key recommendations

Ofgem should:

• Broaden Engagement Criteria to include Referrals via trusted third parties (e.g. advice agencies), attempted payments (e.g. failed direct debits) and responses to outreach (e.g. opening emails, calling helplines)
• Ensure households using prepayment meters are automatically eligible for support
• Remove the minimum debt threshold to ensure smaller but significant debts are also cleared
• Remove the assumption of a 5% Customer Contribution
• Improve supplier compliance and promotion of Fuel Direct