The UK’s energy regulator plans to write off up to half a billion pounds worth of energy debt, it announced today.

Households currently owe energy suppliers a staggering £4.4 billion – a sum that has built up since the onset of the energy crisis in early 2022.

Ofgem’s new Debt Relief Scheme aims to tackle this record-breaking bill by writing off some arrears for vulnerable customers.

The first phase, expected to launch in early 2026, will focus on people receiving means-tested benefits who owe more than £100 from that period. In total, around 195,000 households are expected to benefit.

Charlotte Friel, Ofgem’s director for retail pricing and systems, said the decision should ultimately help everyone – not just those in debt – since unpaid energy bills push up prices across the boar

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