Energy Debt Repayment Plans 2026/27: What Your Supplier Must Offer You
How to negotiate an affordable energy debt repayment plan with your supplier in 2026/27, what Ofgem rules require, and how to avoid a prepayment meter being forced on you.
Why energy debt is treated differently from other debt
Energy is a priority debt in UK consumer protection terms — alongside things like rent, mortgage and council tax — because losing supply has direct safety and wellbeing implications, particularly for vulnerable households. This is why Ofgem imposes specific rules on how suppliers must handle customers who fall behind, going beyond the general debt collection rules that apply to, say, a credit card balance.
What Ofgem requires suppliers to do
Under Ofgem's supplier licence conditions, energy companies must:
- Offer a repayment plan that reflects your ability to pay, taking into account income, essential outgoings and other debts — not simply divide the debt by 12 and demand that monthly figure regardless of affordability.
- Regularly review the plan if your circumstances change, and adjust it where genuinely necessary.
- Consider a payment break or reduced payment for customers in genuine hardship, rather than only offering a standard repayment schedule.
- Signpost to hardship funds, grants and independent debt advice, not just collect the debt.
- Follow specific additional protections before installing a prepayment meter to recover debt, including restrictions for certain vulnerable customers (such as those with certain medical conditions or on the priority services register), whether the meter is a physical device or a remote smart-meter mode switch.
Budget Planner
Plan your monthly budget by entering income and expenses across all categories to see your surplus or shortfall.
Open Budget Planner calculatorWorked example: negotiating an affordable plan
A household has built up £900 of energy debt after a difficult winter. The supplier's initial suggestion is £75 a month for 12 months on top of ongoing usage charges — an amount the household genuinely cannot afford alongside rent, food and other essentials.
Using a full budget breakdown (income minus essential outgoings), the household demonstrates realistic spare capacity of around £30 a month toward the debt. A revised plan spreading the £900 over roughly 30 months at £30 a month, reviewed again in six months, is a more realistic outcome — and one Ofgem's affordability principles support the household requesting, provided it is backed by a genuine, honest picture of income and outgoings.
Debt Payoff Calculator (Avalanche vs Snowball)
Compare avalanche (highest APR first) and snowball (smallest balance first) strategies across multiple UK debts.
Open Debt Payoff calculatorHardship funds worth checking
Beyond a standard repayment plan, it is worth checking:
- Your specific supplier's hardship fund — many major suppliers run grant schemes that can write off some or all of an outstanding balance for eligible low-income customers, though funds and criteria vary and are sometimes limited or seasonal.
- British Gas Energy Trust and similar independent trusts, which in some cases support customers of any supplier, not just their own.
- The Warm Home Discount, a separate £150 credit that, while not a debt-write-off mechanism, reduces the ongoing balance building up.
Avoiding a forced prepayment meter
Suppliers can apply to a court, or in some cases remotely switch a smart meter, to move a customer with unresolved debt onto a prepayment basis. Ofgem tightened the rules around this significantly in recent years, requiring suppliers to demonstrate genuine attempts to agree an affordable repayment plan first, and to avoid this route for higher-risk vulnerable households. Engaging early with a repayment plan proposal, and flagging any vulnerability or priority services register eligibility, is the most effective way to avoid this outcome.
Bottom line
Energy debt is one of the most tightly regulated categories of consumer debt in the UK, with specific Ofgem rules designed to keep repayment plans genuinely affordable and to protect vulnerable households from being forced onto a prepayment meter. Engaging early, providing an honest budget breakdown, and actively asking about hardship funds — rather than waiting for the supplier to volunteer them — consistently produces better outcomes than staying silent while debt builds.
Build a realistic household budget with the budget planner and model a manageable repayment schedule with the debt payoff calculator.
Sources
- Ofgem: Rules for suppliers on customers in debt
- Citizens Advice: Dealing with energy debt
- StepChange: Energy debt advice
Frequently asked questions
Can my energy supplier force me onto a repayment plan I can't afford?
No — Ofgem rules require suppliers to offer repayment plans that are affordable, taking into account your income, expenditure and other debts, and to review the plan if your circumstances change; you can challenge a plan that is clearly unaffordable.
What information will my supplier ask for when setting a repayment plan?
Suppliers typically ask about your household income, essential outgoings, other debts and any vulnerabilities (such as being on the priority services register), and may ask for supporting evidence such as bank statements or a budget summary.
Can a supplier force a prepayment meter on me if I fall into debt?
Suppliers can apply to install a prepayment meter, including remotely via a smart meter, to recover debt, but Ofgem rules restrict this for certain vulnerable customers and require suppliers to have made reasonable attempts to agree an affordable repayment plan first.
What is Ofgem's Debt Relief guidance for energy customers?
Ofgem sets out principles suppliers must follow when dealing with customers in debt, including offering repayment plans, considering payment breaks or reduced payments for those in genuine hardship, and signposting to hardship funds and debt advice.
Are there grants available to help clear energy debt?
Yes — many suppliers run their own hardship funds offering grants toward energy debt for eligible customers, and some independent charitable trusts also provide grants; eligibility and fund availability change frequently, so it is worth checking directly with your supplier and via a debt advice charity.
Should I contact my supplier before or after missing a payment?
Before, if at all possible — contacting your supplier proactively when you know you are struggling generally leads to a more constructive conversation and more flexible options than waiting until payments have already been missed and debt has built up.
Does an energy debt repayment plan affect my credit score?
Missed payments and defaults on an energy account can affect your credit file, but the debt itself being managed through an agreed repayment plan is generally viewed more favourably by credit reference agencies than unmanaged missed payments or a formal default.
Can I switch supplier while on a debt repayment plan?
It is possible in some cases, but outstanding debt often needs to be resolved or transferred as part of switching, and some suppliers may restrict switching until a repayment plan is well established — check with both your current and prospective supplier before assuming a smooth switch.
What is the Warm Home Discount's relationship to energy debt?
The Warm Home Discount is a separate £150 credit for eligible low-income households and is not itself a debt-relief mechanism, but receiving it can meaningfully reduce the balance building up and should be checked alongside any repayment plan discussion.
Where can I get free, independent debt advice about energy arrears?
Free debt advice charities such as Citizens Advice, StepChange and National Debtline can help negotiate with suppliers, check eligibility for hardship funds, and put energy debt in the context of your wider financial position.
Try the calculators
Energy Bill Calculator
Estimate your annual energy bill for gas and electricity based on usage.
Budget Planner
Plan your monthly budget by entering income and expenses across all categories to see your surplus or shortfall.
Debt Payoff Calculator (Avalanche vs Snowball)
Compare avalanche (highest APR first) and snowball (smallest balance first) strategies across multiple UK debts.
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