Major Energy Industry Reforms Announced
Millions of households across Britain are set to benefit from significant changes to energy regulations, offering relief from mounting bills and improved complaint handling processes. Consumer rights champion Martyn James outlines what these reforms mean for you.
Energy Debt Relief Scheme
The energy regulator Ofgem has unveiled plans to address the £4.4 billion in energy debt affecting households nationwide. A new Debt Relief Scheme will target writing off approximately £500 million of this debt, initially focusing on people receiving means-tested benefits who accumulated more than £100 in debt during the energy crisis period between April 2022 and March 2024.
This initiative could help around 200,000 households and will ultimately benefit all bill-payers, as the cost of industry-wide debt currently adds about £52 to the average annual energy bill. The consultation process begins soon, with final announcements expected in early 2026.
Enhanced Energy Ombudsman Powers
Substantial improvements are coming to the Energy Ombudsman service, which provides free dispute resolution for energy complaints. The government has proposed cutting the waiting period from eight weeks to just four weeks before consumers can escalate complaints.
Additional reforms will ensure quicker access to compensation when suppliers fail to deliver services properly. Crucially, energy companies will face financial penalties if they delay implementing the Ombudsman's rulings. The consultation for these changes closes on 04 December 2025, with implementation expected in early 2026.
Complaint Handling Overhaul
Ofgem is shifting its regulatory approach to focus more on complaint outcomes rather than simply tracking complaint volumes. This change acknowledges that companies encouraging customer feedback might naturally record higher complaint numbers, while those making complaint processes difficult might appear to have fewer issues.
Martyn James emphasises the importance of persisting with complaints: "Always insist on a written response from your energy supplier and escalate to the Energy Ombudsman if matters remain unresolved." The consultation for these regulatory changes continues until 22 January 2026.
Recovering Credit Balances
Consumers are encouraged to reclaim credit balances from former energy suppliers, particularly if they switched providers or moved home without receiving refunds. Ofgem estimates that approximately £240 million remains sitting in closed energy accounts across the UK.
Households can contact previous suppliers directly to request refunds of any outstanding credit balances. This action can be taken immediately without waiting for regulatory changes.
Immediate Support Options
For those struggling with current energy costs, several support mechanisms remain available. Energy companies must assist customers experiencing financial difficulties by offering payment reviews, breaks or reductions, extended payment terms, access to hardship funds, and energy efficiency advice.
Vulnerable customers can register for the Priority Services Register, while various grants and benefits may be available through energy providers, local councils, or Citizens Advice. Consumers facing unresolved issues can contact the Energy Ombudsman directly at 0330 440 1624 or through their online portal.
