We warmly welcomed the opportunity to feed into this Ofgem consultation on improving debt standards in the domestic retail market. Our experience as a free debt advice provider shows that there is a pressing need to increase protections for, and improve the consistency of experiences of, customers struggling to keep up with energy bills and consequently interacting with the energy debt pathway.
While some suppliers are employing good practice and engaging constructively with the debt advice sector, this is not consistent and there is still considerable progress to be made by suppliers to fully implement responsible debt collection practices.
We have steadily raised concerns with Ofgem around suppliers misrepresenting or inadequately explaining the service StepChange can provide, harmful billing practices, rejection of reasonable repayment offers, and the poor treatment of customers in vulnerable situations.
It is therefore encouraging to see Ofgem consulting on policy proposals to develop a consumer debt outcome, standardise ability to pay assessments, and improve working between suppliers and consumer groups and charities.
We would argue a cultural shift is required to truly generate consistent, compassionate outcomes for consumers, and we welcome Ofgem’s acknowledgement of its responsibility to ensure that suppliers approach debt recovery in a sustainable, empathetic way which protects consumers.