What are Ofgem's debt repayment rate changes in 2026?

Ofgem is changing how much energy suppliers typically collect from customers each week or month to repay energy debt through an agreed repayment plan from 2026. The aim is to make repayment levels more consistent and affordable, so customers can reduce debt without falling behind on current bills. If you already have a repayment arrangement, your supplier may review your payment amount in line with the new guidance.

Will the 2026 changes increase or decrease my energy bill?

It depends on your current repayment plan and debt level. Some customers may see lower repayment amounts (helping with monthly affordability), while others could be asked to pay a little more if their existing arrangement is below the updated rates. These changes affect the debt-repayment portion of your payments, not the unit rates you pay for gas or electricity.

Who do the Ofgem debt repayment changes apply to?

The changes primarily affect customers repaying energy debt via a formal repayment plan with their supplier (including some prepayment scenarios where debt is collected through the meter). If you do not have energy debt or are not on a repayment arrangement, these changes are unlikely to affect you directly.

I am on a prepayment meter. Will my debt recovery rate change?

If your prepayment meter is set to collect an amount towards debt each time you top up, the debt recovery rate may be reviewed in 2026 in line with Ofgem's approach. If the recovery rate is making it difficult to keep your supply on, contact your supplier as soon as possible to discuss affordability and available support.

Can I ask my energy supplier to reduce my debt repayments if I cannot afford them?

Yes. If your repayments are not affordable, contact your supplier and ask for an affordability review. You can request a repayment plan that reflects your current circumstances, and you may also be eligible for additional support such as payment breaks, revised instalments, or referrals to independent debt advice.

How can I lower my energy costs while repaying debt?

To reduce costs while managing debt: (1) make sure your Direct Debit reflects your actual usage, (2) submit regular meter readings or use a smart meter to avoid estimated bills, (3) check if you are on the best tariff available to you, and (4) improve energy efficiency with simple steps like draught-proofing and heating controls. You can also review your payment plan with your supplier to keep repayments manageable.

Does switching energy supplier affect my energy debt repayment plan?

Switching may be possible, but outstanding debt can limit switching in some cases, especially with certain meter types or if debt is above supplier thresholds. If you want to switch, speak to your current supplier first to understand whether your debt can be transferred or needs to be cleared, and compare options carefully.

What should I do if I am worried about missing payments before 2026?

Act early: contact your supplier, explain your situation, and ask for help before you miss a payment. Request an affordable repayment plan and ask about hardship support, grants, or other assistance you may qualify for. Keeping communication open usually leads to better outcomes than falling into arrears.

Where can I get help understanding my bill and repayment amounts?

You can contact your supplier to request a clear breakdown of what you pay for current energy use versus debt repayment. If you want to understand your options and potentially reduce costs, Energy Plus can help you review your energy setup and point you to relevant cost-saving guidance: https://www.energyplus.co.uk/CostSavingAdvice/ofgem-debt-repayment-rate-changes-2026-energy-bills

Ofgem debt repayment rate changes in 2026: what it could mean for your energy bills

If you’re repaying energy debt through your supplier, changes to repayment rate guidance could affect how much you pay each month from 2026. Compare whole-of-market home energy deals and see whether switching could lower your ongoing costs while you keep on top of repayments.

Understand what “debt repayment rates” are and why Ofgem guidance matters
See how 2026 changes could impact monthly Direct Debit budgets
Get practical steps: talk to your supplier, set an affordable plan, compare tariffs
Whole-of-market comparison for UK homes, with a quick form

Compare energy deals What’s changing in 2026?

Information is for UK home energy customers. Switching depends on eligibility, meter type and supplier terms. If you’re in payment difficulty, contact your supplier as early as possible.

Compare whole-of-market home energy deals (and keep repayments manageable)

If repayment guidance changes in 2026, suppliers may review what they consider an “affordable” monthly debt repayment rate. That can make budgeting harder — especially if your tariff is already expensive. Comparing deals could help lower your ongoing unit rates and standing charges, giving you more headroom to repay debt without falling behind.

Important: Switching supplier when you’re in debt isn’t always straightforward. Some customers can switch, others can’t — and smart/prepayment rules may apply. We’ll show your options based on your details.

What you’ll get

Whole-of-market comparison for gas and electricity (home use)
Options for credit meters and prepayment (where available)
Clear next steps if you’re repaying energy arrears
No jargon — just the key costs and whether it could save you money

Budget tip: if your repayments rise in 2026, the easiest way to protect your monthly budget is often reducing your energy usage and tariff costs at the same time.

What are Ofgem debt repayment rates — and what could change in 2026?

When you owe your energy supplier money (often called energy arrears), repayments are usually added to your monthly Direct Debit or taken through a prepayment meter (PAYG) as a fixed weekly/fortnightly amount. Ofgem sets rules and expectations for fair treatment and affordability. While the exact policy details can evolve, the key point for households is this: repayment rates can be reviewed and adjusted, and that can affect what you’re asked to pay each month.

In plain English

A “debt repayment rate” is the amount you repay on top of your current energy usage. If repayment guidance changes in 2026, your supplier may adjust the monthly amount they set, especially at review points.

Why it matters

Even a modest increase in repayments can push a tight budget into difficulty. Preparing early means you can negotiate an affordable plan, access support, and compare tariffs to cut your ongoing bill.

How repayment changes can show up on your bill

Direct Debit review: your supplier may recalculate your monthly amount to cover usage plus debt repayment.
Prepayment deductions: the weekly debt recovery amount deducted from top-ups may change within allowed rules.
Debt review conversations: you may be asked for income/outgoings to evidence affordability.

This page focuses on practical steps for UK households and how comparing energy tariffs could help reduce the non-debt part of your monthly payments.

Who could be affected by debt repayment rate changes?

You’re more likely to notice changes if any of the below apply. Even if you’re currently up to date, it’s worth checking your statements and repayment plan terms.

Direct Debit customers with arrears

Your monthly amount typically covers estimated usage plus a debt repayment element. Repayment guidance changes may influence what suppliers consider appropriate at review time.

Prepayment (PAYG) customers

Debt can be collected through deductions from top-ups. If rules or default recovery rates change, the amount deducted each week can affect how much credit you keep for energy.

Households with recent bill shocks

If you’ve had a catch-up bill after underpaying, a price rise, or a meter correction, your supplier may set repayments to clear arrears within a certain timeframe — which can be reviewed.

Don’t ignore it: if a repayment amount looks unaffordable, contact your supplier immediately. Under Ofgem rules, suppliers must take account of your ability to pay and offer support options.

How to prepare now (before 2026)

Preparing early can reduce stress if repayment expectations change. The goal is simple: keep repayments affordable while avoiding new debt building up.

Check what you’re actually paying for debt. Look for a line on your bill/statement showing arrears or repayment, or ask your supplier to confirm the repayment amount and balance.
Ask for an affordability review. If you’ve had changes in income or costs, request a review. Be ready with rough figures for rent/mortgage, council tax, food, travel and other essentials.
Reduce your “ongoing bill” first. The lower your current tariff cost, the more room you have for repayments. That’s where a whole-of-market comparison can help.
Get meter and payment method right. If you’re on prepayment and eligible to move to credit, or vice versa, discuss pros/cons. Some customers find budgeting easier with a fixed Direct Debit; others prefer pay-as-you-go.
Keep records of contact. Note dates, names and outcomes from calls/chats. If you later need to escalate a complaint, a simple timeline helps.

Fast win: comparing tariffs and switching where possible can lower the usage portion of your monthly payment — which can make a higher repayment rate easier to manage.

Debt repayment options (what suppliers may offer)

Support can vary by supplier and circumstances, but UK households repaying energy debt often have access to one or more of the following. The right option depends on your meter type, payment method, income and whether you’re considered vulnerable.

Option	What it means	Good for	Watch outs
Affordable repayment plan	A set amount per week/month towards arrears based on what you can afford.	Most households with manageable but tight budgets.	May be reviewed; ask how often, and what triggers a change.
Payment breaks / short-term relief	Temporary reduced repayments while you stabilise finances.	Sudden income drop, illness, short-term crisis.	Debt can take longer to clear; confirm how it resumes.
Prepayment debt recovery adjustment	A change to the amount deducted from top-ups to repay debt.	PAYG customers struggling to keep credit on the meter.	Too high a deduction can lead to self-disconnection; raise this risk early.
Hardship funds / grants	Some suppliers offer funds to reduce arrears for eligible customers.	Low-income households or those in vulnerable circumstances.	Eligibility criteria apply; evidence may be required.

If you’re unsure what you’re entitled to, start with your supplier’s customer support or dedicated “help with bills” team. If needed, you can also contact Citizens Advice for independent guidance.

How repayment rate changes interact with your tariff (why comparison helps)

Your monthly payment is usually made up of two parts:

1) Ongoing energy use

What you’re currently using, based on unit rates and standing charges. This is the part you can often reduce by switching tariff and cutting usage.

2) Debt repayment amount

A fixed amount towards arrears. If guidance changes in 2026, this part could be reviewed and potentially increased depending on your situation.

Key idea: you may not control the policy environment, but you can control what you pay for the energy you use. A cheaper tariff can reduce the pressure if repayments rise.

Use the comparison form to see what’s available for your postcode and payment method.

Common mistakes to avoid if repayments change

Letting Direct Debit drift

If your Direct Debit doesn’t cover your actual usage, you can build fresh debt. Submit meter reads (if you can) and ask for a review.

Ignoring supplier contact

Letters/emails about arrears often include deadlines. Contact early to agree an affordable plan and explore support.

Switching without checking debt rules

Some customers in debt can switch, others can’t, and prepayment arrangements may apply. Compare first and confirm the switch route.

FAQs: Ofgem repayment rates, 2026 and switching

Will my supplier definitely increase my debt repayments in 2026?

Not necessarily. Changes to guidance or default approaches can influence how suppliers set and review repayment amounts, but your plan should still consider affordability and your circumstances. If you’re worried, ask your supplier how and when they review your repayment rate.

Is the repayment rate the same as the Ofgem price cap?

No. The price cap limits the unit rates and standing charges suppliers can charge on default tariffs. Debt repayment rates relate to how arrears are recovered in addition to your ongoing energy use.

Can I switch supplier if I owe my current supplier money?

It depends on your circumstances, meter type and the amount owed. Some customers can switch, while others may be restricted. If you’re on a prepayment meter, specific rules can apply. Use the comparison form and we’ll show what’s available and the likely next steps.

What if the repayment amount is unaffordable?

Tell your supplier immediately and ask for an affordability assessment. Explain essential outgoings and any vulnerability factors. Ask about lower repayment amounts, breathing space, prepayment deductions adjustments, and hardship funds (if applicable).

Does switching reduce my debt?

Switching doesn’t automatically remove existing debt. However, a cheaper tariff can reduce what you pay for ongoing use, which may make it easier to repay arrears and avoid building new debt.

What information should I have ready before contacting my supplier?

Your latest balance, current repayment amount, recent meter readings (if you have them), and a simple budget (income and essential outgoings). If you use medical equipment at home or have health needs, mention it.

Need quick action? Start with the comparison form to see if your ongoing tariff costs can be reduced, then contact your supplier to confirm repayment affordability.

Why households use EnergyPlus

When you’re juggling repayments and day-to-day costs, clarity matters. EnergyPlus is designed to help UK households compare options quickly and understand next steps.

Whole-of-market comparison

We aim to show a broad range of tariffs available for UK homes, based on your postcode, meter and payment method.

Plain-English guidance

Understand what repayment rate changes could mean and what to ask your supplier — without wading through jargon.

Built for busy households

A short form, clear results and practical actions to help you protect your monthly budget.

What customers tell us

"I was worried my payments would go up again. Comparing deals helped me cut the usage part of my bill and plan repayments properly."

UK homeowner, credit meter

"The steps were clear — I contacted my supplier with the right info and got a more affordable plan."

UK tenant, prepayment

Ready to protect your 2026 budget?

If repayment expectations change, the best time to reduce your ongoing energy costs is before your budget gets squeezed. Compare whole-of-market home energy deals in minutes.

See tariffs available for your postcode
Check options for your payment method
Keep more room in your monthly budget for repayments

Compare energy deals now Read about 2026 changes

No obligation. If you’re struggling to pay, contact your supplier and ask about affordable repayments and support.

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Updated on 14 Feb 2026