Ofgem interim chief Tim Jarvis said Britain must tighten rules on energy‑bill exemptions as household debt swells. Consumers now owe a record £4.5 bn, 71% up from 2023, and three‑quarters of that is over 90 days overdue with no repayment plan. Jarvis argued the regulator must rebalance vulnerable protection against a debt pile that fuels higher bills.

Energy firms warn arrears deter investment, describing a ‘culture of non‑payment’ with few penalties. Suppliers use pay‑as‑you‑go meters but cannot impose them on vulnerable homes, and Ofgem lacks clear vulnerability criteria. Jarvis said providers feel unable to challenge exemptions and Ofgem will study stricter debt‑recovery rules when ability to pay is proven.

British Gas contributed £20 mn to Ofgem’s redress fund and will write off up to £70 mn of vulnerable‑customer debt after a regulator probe. Suppliers recoup collection costs by adding about £50 annually to the average direct‑debit bill, a charge that may persist as wholesale prices rise. The regulator’s tighter stance could curb debt growth while testing utilities’ balance between revenue recovery and hardship protection.