Energy firms to offer ‘no standing charge’ tariffs and struggling customers to get debts wiped in huge shake-up
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MILLIONS of energy customers will get access to 'no standing charge' tariffs under new plans revealed by Ofgem today. The energy regulator is also planning to launch new support for customers struggling with debt. As part of its plans, there could be a new scheme that means some customers could have their debts wiped or have repayments matched to help them clear their arrears.
![[In addition, Ofgem has announced plans to require energy suppliers to offer zero standing charge tariffs]](https://www.thesun.co.uk/wp-content/uploads/2024/12/NINTCHDBPICT000945090554.jpg?strip=all&w=960)
The proposals are part of a huge shake-up to help tackle the "stubbornly high" debt levels that have built up despite falling energy prices. Total energy debt is now at more than £3.8billion, a rise of more than £2billion in the last three years. According to The Money Advice Trust, the charity behind National Debtline, the average energy arrears per customer have soared by 37% in the past year alone, now standing at £1,541.
Analysts at Cornwall Insight warn that the changes could add up to £20 a year to millions of households bills across the UK in order to pay for the changes. Steve Vaid, chief executive of the Money Advice Trust, the charity that runs National Debtline, which has been calling for the debt reforms, said: "It's really positive to see that Ofgem has listened to our calls and recognised the need for a dedicated scheme to help people repay unaffordable energy debts, through debt write-off and repayment matching.
"Offering people help to repay in this way could lift millions of people out of debt, and will have wider benefits for consumers and energy suppliers. "Ofgem must now work closely with suppliers and charities to bring the scheme into effect as soon as possible next year.".
