London Daily

Focus on the big picture.
Thursday, Sep 11, 2025

UK energy firms ‘chasing customers to pay more than they can afford’

UK energy firms ‘chasing customers to pay more than they can afford’

Fuel poverty charity warns of aggressive debt collection tactics as prices soar

Energy companies are adopting increasingly aggressive debt collection practices and sharpening their communications with customers to increase profits, a leading fuel poverty charity has warned.

National Energy Action (NEA) said householders are being forced into significantly worse situations than in previous years, including higher direct debits without change of usage, unaffordable debt repayment plans and prepayment meters, as energy companies accelerate debt collection to recoup costs.

The charity reported customers being “aggressively chased” for payments and said that letters and other communications from companies have become considerably sharper and arrive faster than normal.

With bills set to rise by 54% in April, which is expected to push even more people into debt, NEA warned that if energy companies do not change their practices it will lead to an increase in energy rationing and self-disconnections.

Customers told the Observer of being chased by debt collection departments within the 14-day bill payment period.

“What’s driving this is that over the past few months, suppliers have been unable to make a profit so chasing debt becomes much more important for them as a business and that’s what leads to this change in tactics to reduce levels of debt they see,” said Matt Copeland, the NEA’s head of policy and public affairs.

Matt Copeland of National Energy Action said chasing debt had become more important for energy suppliers that were unable to make profits.


Energy companies are required by regulator Ofgem to set debt repayment plans based on what customers are able to pay. But Copeland said that when customers go into debt, companies are being “less proactive” in ensuring that repayment plans are affordable for customers.

Meanwhile, he said some customers are being subjected to the “double whammy” of unaffordable debt payment plans and rising direct debits at once. “Overall the process around debt and escalation is sharpening up and we’re seeing people getting into that process a lot more quickly.”

The NEA is seeing particularly acute problems among customers whose debts were transferred to administrators rather than their new supplier when their energy companies went into administration.

“In these cases, we are seeing much more aggressive debt collection practices which bypass a lot of necessary protections, especially for the most vulnerable customers,” said Copeland.

He called on Ofgem and the government to take action to close the loopholes that make it possible, especially ahead of April’s cost rise.

Annamaria Bridson from south Wales was so surprised to receive an email from Ovo Energy’s debt collections department, just five days after receiving a bill earlier this month, that she thought it might be a scam. Not only did the bill for her late mother’s property state that she had 14 days to settle, but she had already paid it.

“It’s absolutely dreadful,” she said. “To receive an email from a debt collections department five days after receiving a bill? That is going to cause anybody to panic.”

A 49-year-old from London, who receives disability benefits and did not want to be named, said she had been in debt to EDF Energy for some time. Recently she had seen an escalation in letters from the company, which was detrimental to her mental health.

“I’m paying £50 off and then you’re adding £50 two days later. How am I ever going to get out of debt?”

The Money Advice Trust, which runs National Debtline, reported issues with customers being told they have to pay more than what they can afford in monthly arrears and direct debit payments and vulnerable circumstances not being taken into consideration. They called on Ofgem and suppliers “to work together to agree a new energy plan to help people in energy debt.”

Ofgem said debt management “must be done in a fair and reasonable way at all times, including communicating and taking account of customers’ ability to pay.”

A spokesperson said: “Suppliers cannot extend unlimited credit to customers, but we will not tolerate sharp practice or aggressive debt collection.”

An Ovo spokesperson said: “We’re very sorry to Ms Bridson for the shortfalls in service she experienced. We can confirm the account is now updated.”

An EDF spokesperson said it would look into the customer’s case and added: “With regards to customers with debt issues, at EDF we are committed to doing all we can to ensure customers are well supported.”

The spokesperson also said that EDF made a loss in 2021.

Newsletter

Related Articles

0:00
0:00
Close
ChatGPT CEO signals policy to alert authorities over suicidal youth after teen’s death
The British legal mafia hit back: Banksy mural of judge beating protester is scrubbed from London court
Surpassing Musk: Larry Ellison becomes the richest man in the world
Embarrassment for Starmer: He fired the ambassador photographed on Epstein’s 'pedophile island'
Manhunt after 'skilled sniper' shot Charlie Kirk. Footage: Suspect running on rooftop during panic
Effective Protest Results: Nepal’s Prime Minister Resigns as Youth-Led Unrest Shakes the Nation
Qatari prime minister says Netanyahu ‘killed any hope’ for Israeli hostages
King Charles and Prince Harry Share First In-Person Moment in 19 Months
Starmer Establishes Economic ‘Budget Board’ to Centralise Policy and Rebuild Business Trust
France Erupts in Mass ‘Block Everything’ Protests on New PM’s First Day
Poland Shoots Down Russian Drones in Airspace Violation During Ukraine Attack
Brazilian police say ex-President Bolsonaro had planned to flee to Argentina seeking asylum
Trinidad Leader Applauds U.S. Naval Strike and Advocates Forceful Action Against Traffickers
Kim Jong Un Oversees Final Test of New High-Thrust Solid-Fuel Rocket Engine
Apple Introduces Ultra-Thin iPhone Air, Enhanced 17 Series and New Health-Focused Wearables
Macron Appoints Sébastien Lecornu as Prime Minister Amid Budget Crisis and Political Turmoil
Supreme Court temporarily allows Trump to pause billions in foreign aid
Charlie Sheen says his father, Martin Sheen, turned him in to the police: 'The greatest betrayal possible'
Vatican hosts first Catholic LGBTQ pilgrimage
Apple Unveils iPhone 17 Series, iPhone Air, Apple Watch 11 and More at 'Awe Dropping' Event
Pig Heads Left Outside Multiple Paris Mosques in Outrage-Inducing Acts
Nvidia’s ‘Wow’ Factor Is Fading. The AI chip giant used to beat Wall Street expectations for earnings by a substantial margin. That trajectory is coming down to earth.
France joins Eurozone’s ‘periphery’ as turmoil deepens, say investors
On the Anniversary of Queen Elizabeth’s Death: Prince Harry Returns to Britain
France Faces New Political Crisis, again, as Prime Minister Bayrou Pushed Out
Murdoch Family Finalises $3.3 Billion Succession Pact, Ensuring Eldest Son’s Leadership
Big Oil Slashes Jobs and Investments Amid Prolonged Low Crude Prices
Court Staff Cover Up Banksy Image of Judge Beating a Protester
Social Media Access Curtailed in Turkey After CHP Calls for Rallies Following Police Blockade of Istanbul Headquarters
Nayib Bukele Points Out Belgian Hypocrisy as Brussels Considers Sending Army into the Streets
Elon Musk Poised to Become First Trillionaire Under Ambitious Tesla Pay Plan
France, at an Impasse, Heads Toward Another Government Collapse
Burning the Minister’s House Helped Protesters to Win Justice: Prabowo Fires Finance Minister in Wake of Indonesia Protests
Brazil Braces for Fallout from Bolsonaro Trial by corrupted judge
The Country That Got Too Rich? Public Spending Dominates Norway Election
Nearly 40 Years Later: Nike Changes the Legendary Slogan Just Do It
Generations Born After 1939 Unlikely to Reach Age One Hundred, New Study Finds
End to a four-year manhunt in New Zealand: the father who abducted his children to the forests was killed, the three siblings were found
Germany Suspends Debt Rules, Funnels €500 Billion Toward Military and Proxy War Strategy
EU Prepares for War
BMW Eyes Growth in China with New All‑Electric Neue Klasse Lineup
Trump Threatens Retaliatory Tariffs After EU Imposes €2.95 Billion Fine on Google
Tesla Board Proposes Unprecedented One-Trillion-Dollar Performance Package for Elon Musk
US Justice Department Launches Criminal Mortgage-Fraud Probe into Federal Reserve Governor Lisa Cook
Escalating Drug Trafficking and Violence in Latin America: A Growing Crisis
US and Taiwanese Defence Officials Held Secret Talks in Alaska
Report: Secret SEAL Team 6 Mission in North Korea Ordered by Trump in 2019 Ended in Failure
Gold Could Reach Nearly $5,000 if Fed Independence Is Undermined, Goldman Sachs Warns
Uruguay, Colombia and Paraguay Secure Places at 2026 World Cup
Florida Murder Case: The Adelson Family, the Killing of Dan Markel, and the Trial of Donna Adelson
×