Acting early, acting together – addressing the challenge of rising energy debt
Philippe Commaret, Managing Director for Customers
| EDF
This winter will mark 4 years since the beginning of the energy crisis, but we are yet to find an enduring solution to the issue of energy affordability.
We’ve seen the number of households spending more than 10 per cent of their household income on energy costs more than double compared to pre-crisis levels1 and coupled with this, a sharp rise in energy debt.
Ofgem estimates that household debt over 90 days old has reached £4bn, double the level it was in 2022. However, this figure doesn’t account for newer debt. At EDF, around 20% of live residential debt is less than 90 days old, meaning the challenge could be even greater than Ofgem’s estimate suggests. Moreover, debt levels are expected to rise further when the price cap increases in October, with the average bill reaching £1,755.
The reality is that an increasing number of families are struggling to keep up with bills. Energy debt doesn’t just compound issues for those who can’t pay – it also adds extra costs to all bill payers, to the tune of an extra £166 on average for customers paying by cash or cheque and £58 for those paying by Direct Debit.
Evidence shows that timely support makes a real difference. We know that when people engage early, we can help them get out of debt, and stay out. Last year’s debt clearance success proves it works, with thousands of households supported and the vast majority remaining debt-free.
At EDF, we’re clear on our responsibility to act and address this growing problem. In 2024, we cleared £1.5 million in energy debt, and nine in ten of those we helped stayed debt-free for at least a year. We also provided advice and support to 383,000 households struggling with their energy bills – reaching 237,000 already this year.
And just recently, we launched a new £30m Winter Support Package, which will help even more households this winter.
As part of this, we’re working with partners to provide the right advice to prevent problems arising, or worsening. A new addition to this support package this year is our partnership with TellJo; a service that uses real time wellbeing data to identify and help customers at risk of falling into debt, earlier.
We’re also strengthening our existing partnerships with Citizens Advice Plymouth, IncomeMax and Charis Grants to deliver financial and energy advice.
We know just how vital customer service is when breaking down barriers to a conversation on debt. It’s for this reason we’ve re-invested into our expert frontline teams, ensuring that customers with complex needs get the tailored, hands-on help they need.
We ask MPs to encourage constituents who are struggling to reach out so we can support an early intervention, with information on support and advice available at www.edfenergy.com/billadvice.
This September, we’re re-launching Sunday Saver; offering free electricity on Sundays to customers who reduce their usage during weekday peak hours. Sunday Saver customers have already earned over 9.6 million kWh of free electricity (5.6 million hours), with over £2.4 million being credited onto customers’ bills.
We’re also continuing to offer fixed products; ensuring our customers can save money against the price caps. Just last week we launched our new Simply Fixed Aug26v11 tariff, which offers households the cheapest energy-only fixed price among major suppliers.
While this well-rounded package of measures is a significant step forward, the growing problem of energy debt cannot be solved in isolation from the Government.
Too many customers are struggling in silence until what they owe becomes unmanageable. We need a system that reaches people sooner and protects the most vulnerable, while keeping costs fair for everyone.
That’s why at EDF we’re calling for three strategic reforms to better support customers and to prevent the debt crisis from escalating:
- The first is a national debt relief scheme, offering a genuine fresh start for those in persistent energy debt – with broader benefits felt by all customers.
- We’re calling for further reforms to the Warm Homes Discount through an enduring, fairer social discount so that energy remains affordable for those who cannot keep up.
- These measures should also be complemented by a central database of vulnerable households. Using government data and building on plans for a cross-utility Priority Services Register, Government can enable earlier and more effective support to customers.
The need for Britain to deliver affordable, clean and secure energy for all is well understood, and the energy debt cycle remains a major barrier to delivering this.
To make a significant and long-term difference, we need to take action today, working hand in glove across industry, Government and Ofgem for the benefit of all.
- Number of households in England required to spend more than 10% of their after housing costs (AHC) income on energy costs, comparing the period 2020 to 2024. Source: Annual Fuel Poverty Statistics in England 2025 (2024 data), DESNZ.
