Ofgem £500m Energy Debt Write-Off Imminent

Ofgem unveiled a scheme to write off up to £500 million of historic household energy bill debt from the recent crisis, which it says could help roughly 195,000 customers and comes as total consumer energy debt is about £4.4 billion. The regulator said a consultation on the first phase is due to begin shortly and is expected to prioritise people on means‑tested benefits with more than £100 of debt; the package also includes proposals to change how debts are recorded when people move home. Ofgem noted unpaid costs are already socialised across bills (about £52 is currently built into the price cap), and some reporting estimates the new measure could add roughly £5 a year to the average billpayer’s charges by 2027–28. MPs and campaigners have urged alternatives such as using supplier windfall profits to cover the cost, and the move may be controversial if further phases lead to wider cost socialisation.