A new £74 million compensation package from Ofgem has put the spotlight on how energy suppliers treated people in debt. But at Debt Free Advice, we’ve been supporting those affected long before this became a headline.
In the past two years, our coalition has supported 24,500 people across London, helping unlock over £36.5 million in financial gains - from unclaimed benefits to breathing space and debt write-offs. Behind those numbers is a starker picture: debt levels are rising fast, and energy arrears are now a feature in more and more of the cases we see. The average total debt our clients hold has risen to over £16,000.
It’s increasingly common for people to reach us not because of a bill - but because the electricity has cut out and they don’t know why. We’ve heard from people who’ve found out mid-shift, while trying to cook for their kids, or after coming home from a hospital appointment. In many cases, they’d been switched to a prepay meter without their knowledge, consent, or any attempt to check if it was safe.
“Forced prepay meters became the norm, not the exception. We’ve supported people who didn’t even know their meter had been switched until the lights went out - and that’s just not good enough. Some only realised when they couldn’t boil a kettle or turn the heating on.
The average debt we’re dealing with now is over £16,000, and energy arrears are a growing part of that. Ofgem’s £74 million payout is a step forward, but the damage is real, and the trust is broken.
At Debt Free Advice, we’ve been helping people deal with the consequences - but it shouldn’t be left to charities to pick up the pieces.
We need proper safeguards in place now. No one should be forced into the dark just because they’re behind on a bill.
Ofgem’s review found that eight suppliers - including EDF, Scottish Power, Octopus and E.ON - fell short of their responsibilities between January 2022 and January 2023. £5.6 million in compensation is being issued directly to 40,000 affected customers, with a further £13 million in debt write-offs. Investigations into British Gas, Ovo, and Utilita are ongoing.
If you’re unsure whether you’re entitled to compensation, you don’t need to apply - Ofgem has confirmed that payments will be made automatically by your energy supplier. However, if you think your meter was switched without your knowledge or consent during that period, and you haven’t heard from your supplier, it’s worth contacting them directly to check your status. You can also speak to one of our advisors if you’re unsure how to raise this or need support dealing with your supplier.
While this intervention is necessary, it isn’t enough. The people we see are often already trying to manage health conditions, caring responsibilities, or unpredictable incomes. When the system punishes those realities instead of responding to them, it doesn’t just cause harm—it undermines trust completely.
If you’re worried about energy arrears, disconnection, or being pressured into prepayment, we’re here to help. Call 0800 808 5700, chat to us at debtfreeadvice.com, or speak to one of our advisors via a video kiosk near you.