London Daily

Focus on the big picture.
Wednesday, Oct 08, 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
France: Less Than a Month After His Appointment, the New French Prime Minister Resigns
Hungarian Prime Minister Viktor Orbán stated that Hungary will not adopt the euro because the European Union is falling apart.
Sarah Mullally Becomes First Woman Appointed Archbishop of Canterbury
Mayor in western Germany in intensive care after stabbing
Australian government pays Deloitte nearly half a million dollars for a report built on fabricated quotes, fake citations, and AI-generated nonsense.
US Prosecutors Gained Legal Approval to Hack Telegram Servers
Macron Faces Intensifying Pressure to Resign or Trigger New Elections Amid France’s Political Turmoil
Standard Chartered Names Roberto Hoornweg as Sole Head of Corporate & Investment Banking
UK Asylum Housing Firm Faces Backlash Over £187 Million Profits and Poor Living Conditions
UK Police Crack Major Gang in Smuggling of up to 40,000 Stolen Phones to China
BYD’s UK Sales Soar Nearly Nine-Fold, Making Britain Its Biggest Market Outside China
Trump Proposes Farm Bailout from Tariff Revenues Amid Backlash from Other Industries
FIFA Accuses Malaysia of Forging Citizenship Documents, Suspends Seven Footballers
Latvia to Bar Tourist and Occasional Buses to Russia and Belarus Until 2026
A Dollar Coin Featuring Trump’s Portrait Expected to Be Issued Next Year
Australia Orders X to Block Murder Videos, Citing Online Safety and Public Exposure
Three Scientists Awarded Nobel Prize in Medicine for Discovery of Immune Self-Tolerance Mechanism
OpenAI and AMD Forge Landmark AI-Chip Alliance with Equity Option
Munich Airport Reopens After Second Drone Shutdown
France Names New Government Amid Political Crisis
Trump Stands Firm in Shutdown Showdown and Declares War on Drug Cartels — Turning Crisis into Opportunity
Surge of U.S. Billionaires Transforms London’s Peninsula Apartments into Ultra-Luxury Stronghold
Pro Europe and Anti-War Babiš Poised to Return to Power After Czech Parliamentary Vote
Jeff Bezos Calls AI Surge a ‘Good’ Bubble, Urges Focus on Lasting Innovation
Japan’s Ruling Party Chooses Sanae Takaichi, Clearing Path to First Female Prime Minister
Sean ‘Diddy’ Combs Sentenced to Fifty Months in Prison Following Prostitution Conviction
Taylor Swift’s ‘Showgirl’ Launch Extends Billion-Dollar Empire
Trump Administration Launches “TrumpRx” Plan to Enable Direct Drug Sales at Deep Discounts
Trump Announces Intention to Impose 100 Percent Tariff on Foreign-Made Films
Altman Says GPT-5 Already Outpaces Him, Warns AI Could Automate 40% of Work
Singapore and Hong Kong Vie to Dominate Asia’s Rising Gold Trade
Trump Organization Teams with Saudi Developer on $1 Billion Trump Plaza in Jeddah
Manhattan Sees Surge in Office-to-Housing Conversions, Highest Since 2008
Switzerland and U.S. Issue Joint Assurance Against Currency Manipulation
Electronic Arts to Be Taken Private in Historic $55 Billion Buyout
Thomas Jacob Sanford Named as Suspect in Deadly Michigan Church Shooting and Arson
Russian Research Vessel 'Yantar' Tracked Mapping Europe’s Subsea Cables, Raising Security Alarms
New York Man Arrested After On-Air Confession to 2017 Parents’ Murders
U.S. Defense Chief Orders Sudden Summit of Hundreds of Generals and Admirals
Global Cruise Industry Posts Dramatic Comeback with 34.6 Million Passengers in 2024
Trump Claims FBI Planted 274 Agents at Capitol Riot, Citing Unverified Reports
India: Internet Suspended in Bareilly Amid Communal Clashes Between Muslims and Hindus
Supreme Court Extends Freeze on Nearly $5 Billion in U.S. Foreign Aid at Trump’s Request
Archaeologists Recover Statues and Temples from 2,000-Year-Old Sunken City off Alexandria
China Deploys 2,000 Workers to Spain to Build Major EV Battery Factory, Raising European Dependence
Speed Takes Over: How Drive-Through Coffee Chains Are Rewriting U.S. Coffee Culture
U.S. Demands Brussels Scrutinize Digital Rules to Prevent Bias Against American Tech
Ringo Starr Champions Enduring Beatles Legacy While Debuting Las Vegas Art Show
Private Equity’s Fundraising Surge Triggers Concern of European Market Shake-Out
Colombian President Petro Vows to Mobilize Volunteers for Gaza and Joins List of Fighters
×