While it is important that debt is recovered, it must be done in a way which takes account of the individual customer circumstances, Ofgem said.
Ofgem has established a set of key principles, which suppliers should consider to ensure they are properly and proactively taking account of a customer’s ability to pay. These include making proactive contact with the customer and ensuring they understand the repayment arrangements.
Ofgem and national charity Citizens Advice met with suppliers who gave their support to the key principles and suppliers are due to meet with the Energy Retail Association to discuss implementation.
Sarah Harrison, senior partner for sustainable development at Ofgem, said: “While the number of energy customers in debt has remained relatively stable over the past 18 months, the amount that they owe has been increasing.
“In these difficult economic times it is particularly important that suppliers set debt repayment levels appropriate to individual customers’ circumstances and ability to pay. We are pleased that the industry supports the key principles we have identified to improve the way suppliers deal with indebted customers.”
Audrey Gallacher, head of energy policy at Consumer Focus, said: “We welcome commitments from energy suppliers to improve how they treat consumers in debt. However, there are still problems with suppliers setting unaffordable debt repayment levels.
“On a daily basis customers contact both us and Consumer Direct saying they are worried about paying their debts. Given the continued difficult economic situation, it’s more important than ever that suppliers understand their customers’ personal circumstances and agree realistic and affordable debt repayment plans.”
