Ofgem strengthens protections for customers struggling with energy bills this winter

From today, the first of new regulations will require suppliers to offer emergency credit to customers struggling to top up their prepayment meter, many of whom are likely to be in vulnerable circumstances.

This could be because they temporarily cannot afford to top up or get to their local shop to top up because of a mobility issue or due to self-isolation for example.

Suppliers will also have to offer extra prepayment credit for households in vulnerable circumstances to provide more breathing space while working out alternative arrangements to pay.

These requirements will help reduce the number of prepayment customers who go without energy or “self-disconnect” after running out of credit on their meter.

In March this year, suppliers voluntarily agreed to support vulnerable customers through COVID-19, including those on prepayment meters facing difficulties in topping up. The new licence rule will require suppliers to offer this extra protection.

Another new licence rule Ofgem has introduced requires suppliers to put customers in debt on realistic and sustainable repayment plans.

This means suppliers will have appropriate credit management policies, make proactive contact with customers, and set repayment rates based on ability to pay. Many suppliers already have this in place, but making it a formal licence requirement will ensure more customers are helped.

This is welcome news for older people in Norwich who are struggling to pay their fuel bills. Many have found it especially difficult to top up their prepayment cards during the pandemic, if they have been isolating at home and unable to visit their local shop.

The pandemic has also meant that many older people have been using more household energy than normal as they have been at home much longer this year, not visiting their families or going out to their usual activities as a result of lockdown and shielding.

This will mean no one needs to worry about their energy being cut off if they temporarily run out of credit.