Consumer rights expert Martyn James explains all the different rules that are coming in for the energy industry and how it impacts your bill
Of all the subjects that concern readers, energy bills top the list at the moment.
I’ve been flooded with horror stories about gigantic energy bills that don’t make sense, wonky smart meters and unaffordable debts. I’ll be updating all of my guides to help you through the autumn and winter months. But for now… some good news!
…quite a bit of good news actually. Because the rules around energy, complaints, debt and support are all going to change for the better soon if all goes to plan. In fact so much has been announced in the last few weeks, chances are you’ll have missed many of the proposals.
So here’s my guide to all of the changes heading our way – and what they mean for you.
Dealing with energy debt
If you can’t afford your energy bills, then your energy company has loads of options to help you reduce your bill (see below). However, unless the debts are written off, they can continue to rise, causing a huge amount of distress for people who are simply unable to pay.
So, regulator Ofgem has announced the first phase of its plan to deal with energy debt.
Millions of people struggle with their energy bills and debts currently stand at around £4.4 billion. Ofgem is proposing that £500 million of that debt will be written off under a new Debt Relief Scheme. This matters because the cost of this outstanding debt is spread over all of our bills – currently around £52 on the average bill each year.
How this all works is a bit complicated, but the plan is will initially target people on means-tested benefits with more than £100 of debt built up between during the energy crisis (April 2022 to March 2024 according to Ofgem). That’s around 200,000 people.
When will we see these changes? The consultation is due to start soon with announcements in the new year.
New tougher powers for the Energy Ombudsman
The Energy Ombudsman is the free alternative to the courts that you go to if you have a problem with an energy business that you can’t sort out.
Regular readers will know I’m a huge fan of ombudsman services and other free complaint dispute resolution schemes. But many people tell me that the different rules for the various schemes can be confusing.
Well I’m pleased to say that after over a decade of campaigning, the Energy Ombudsman is getting some new powers that will make life easier if you have an energy complaint. The new rules announced by the government propose:
- Halving the waiting period from eight weeks to four weeks before you can take your complaint to the ombudsman.
- Giving customers quicker access to redress when their supplier lets them down.
- Forcing suppliers to pay compensation if the ombudsman’s rulings aren’t implemented quickly enough
That last point is important because even though ombudsman’s decisions are non-negotiable – businesses must abide by them – a significant number of businesses have been pushing it. This is being clamped down on by the regulator Ofcom and the government is watching.
When will we see these changes? The consultation is underway and ends on 04 December 2025, so we can expect an announcement in early 2026. Tell your MP.
Changing the way complaints are addressed
This one has just been announced this week but it’s a biggie. Ofgem is proposing changing the way it regulates energy firms so it is more focused on ‘outcomes’. That sounds a bit like corporate-speak, but it’s a good thing when you look at the details.
That’s because in future, complaints about energy matters will be considered more on how the complaints get sorted out, instead of putting too much weight on things like volume. The number of complaints a business gets is misleading as a good business that encourages its customers to get in touch will have higher rates of complaint, as opposed to a business that makes it hard to contact them or register a complaint.
I’ve long had concerns about the way energy companies make it hard to make complaints – and I’ve received endless messages from readers who have been fobbed off on the phone or unable to log their dissatisfaction. Too many people tell me their complaints just don’t get sorted out. Astoundingly, the energy industry genuinely believes it’s performing better because complaints have dropped. Tell me: do you think that’s the case?
That’s why it’s really important that you don’t give up with an energy complaint. Insist on a written response from your energy supplier and take the matter further to the Energy Ombudsman if it’s not sorted out.
When will we see these changes? The consultation is on until 22 January 2026, so expect results after that. But hold businesses to account right now.
Claim back your credit balances!
Energy firms make it far too hard to claim back the credit you build up over the summer months. Many force you on to your laptop or computer – or even on to the phone – to request a refund. But the big issue happens when people move home or switch to a new company.
Ofgem says that there is currently £240 million lying around in closed energy accounts. So get in touch with your old energy firm if you didn’t get a credit balance refund when you moved or switched supplier.
When will we see these changes? You can do this right now.
Financial difficulties and vulnerable customers
All of these new announcements are potentially going to shake up the energy industry. But what do you do if you need help right now?
If you don’t have enough money to cover an emergency when you’ve paid your essential outgoings each month then you meet the criteria for ‘financial difficulties’. That means the energy firm must come up with solutions that meet your needs.
You’ll need to put together a brief overview of your finances. This basic budget only needs to cover the money you have coming in versus your essential or obligated monthly payments.
The energy firm is allowed to ask you for this so they can figure out the best solution to your situation. Make sure you note down if you are worried about losing your job, or a source of money. Have a think about your home situation too. It can help to explain about the needs of your family, who the wage earners are and if anyone has specific needs or could be considered vulnerable or older.
According to Ofgem’s regulations, the energy firm should come up with a tailored plan to meet your needs. You can read what businesses are supposed to do on regulator Ofgem’s website.
Ofgem says that you can ask for the following:
- A review of your payments and debt repayments
- Payment breaks or reductions
- More time to pay
- Access to hardship funds
- Advice on how to use less energy
- The option to go on the Priority Services Register – a free support service for a wide range of people struggling or who need support: https://www.ofgem.gov.uk/getting-extra-help-priority-services-register
Getting grants and benefits
Did you know that there are a range of grants and benefits that you can claim or receive if you meet the criteria?
Citizens Advice has the definitive guide to all of the grants (through your energy firm) or benefits (through the provider of your benefits or credits).
You could even get help from your local council or obtain a fuel voucher if you are on a pre-payment meter.
Taking things further
You don’t need to wait until the Energy Ombudsman gets their new powers. If you can’t sort out a problem then do it today.
Just click on this link and follow the step-by-step instructions. The Ombudsman will ask you to explain the problem in your own words and will ask what you would like to sort things out. You’ll also be able to upload supporting documents and photographs too. You can also ask the Ombudsman to consider the time and trouble it has taken to make the complaint. You’ll be able to monitor the progress of your complaint through your online account with the Energy Ombudsman too.
If you’d rather have a chat with the Energy Ombudsman, their phone lines are open Monday to Friday 8am until 8pm and Saturday 9am until 1pm. 0330 440 1624.
- Martyn James is a leading consumer rights campaigner, TV and radio broadcaster and journalist
