Ofgem debt repayment rate changes 2026: what it could mean for your energy bills
If you’re repaying energy debt through your electricity or gas account, Ofgem’s repayment-rate changes planned for 2026 could affect your monthly Direct Debit and how quickly your balance clears. Compare whole-of-market tariffs and see options that may help you manage costs at home.
- Understand how supplier debt repayments typically work (including ‘debt repayment plans’ on your bill)
- See what to ask your supplier if your payments rise in 2026
- Compare home energy tariffs (whole-of-market) and request help finding the right deal
EnergyPlus is a UK comparison service (whole-of-market). This page is general information for home energy customers and isn’t financial advice.
Check your options if your debt repayment rate changes in 2026
When you’re repaying an energy balance, suppliers can collect the ongoing cost of energy plus a set amount towards debt through your Direct Debit or payment arrangement. If Ofgem updates the guidance or rules around repayment rates in 2026, many households could see changes in the “debt repayment” part of their bill—even if unit rates don’t move.
EnergyPlus compares home energy tariffs across the market. If you’re worried about affordability, we can help you: check what you’re paying now, compare available tariffs, and prepare the right questions for your supplier if your repayment amount increases.
Good to know: switching supplier doesn’t automatically wipe energy debt. If you owe a balance, your current supplier may require repayment or may block switching in certain circumstances. We’ll explain typical scenarios below so you can plan next steps.
Get a comparison & repayment check
Complete the form and we’ll help you compare home energy tariffs and understand what to ask about repayment amounts.
If you’re in immediate difficulty: contact your supplier and ask about an affordable repayment plan, payment breaks, or support schemes. If you’re vulnerable or struggling, you can also speak to Citizens Advice for independent guidance.
Mobile layout note: the comparison form stacks below the content for easy completion.
Why these repayment-rate changes matter for household budgets
Monthly payments can change without unit rates changing
Your Direct Debit can include a separate amount to reduce debt. If repayment rates rise, your bill can go up even when the price cap or your tariff rates stay the same.
It affects how quickly your balance clears
Higher repayment rates may clear arrears faster but can be unaffordable for some households. Lower rates may be manageable but keep debt on the account longer.
Your switching options may depend on your situation
If you’re in debt, rules and supplier policies can affect whether you can switch, especially with prepayment meters or specific debt arrangements.
SEO note (for readers): People often search “Ofgem debt repayment rate changes 2026 energy bills” when they’ve had a Direct Debit review, received an arrears letter, or seen a “debt repayment” line added to their plan. This page explains the practical impact and your next steps.
What are Ofgem debt repayment rate changes (and why 2026 matters)?
Ofgem regulates the energy market in Great Britain and sets rules and guidance for suppliers, including how customers in debt are treated. A “debt repayment rate” (or repayment amount) is the portion of your payments set aside to reduce arrears on your energy account. Changes expected around 2026 may update the way repayment rates are set, communicated, or reviewed to better reflect affordability and consistent treatment across suppliers.
In plain English
If you owe money to your energy supplier, you may be asked to pay back a fixed amount each month (or weekly on prepayment) on top of your current usage. If the standard repayment rate changes, your payment plan may be recalculated at your next review.
What you might notice
A letter or email about a Direct Debit review, a new “arrears repayment” line, or a higher requested payment. The change can be separate from any tariff or price cap update.
Key points to remember
- Repayment is separate from the tariff: even a cheaper tariff may still include debt repayment.
- Affordability should be considered: you can ask for a review if the repayment amount is not manageable.
- Keep evidence: recent statements, meter reads and income/expenditure info can help when requesting a lower rate.
Who could be affected by repayment-rate changes in 2026?
Repayment-rate changes typically matter most to households already on a repayment arrangement or at risk of falling behind. You may be affected if any of the following apply:
You’re on Direct Debit and have arrears
Suppliers may combine estimated annual usage with a debt repayment amount. Any repayment-rate adjustment could increase or decrease the monthly total.
You’re on a prepayment meter (PPM)
Debt is often collected through a weekly deduction or per-top-up amount. If deduction rates change, the amount available for energy after topping up can fall.
Your supplier is reviewing your account
Annual reviews, missed payments, or large catch-up bills can trigger repayment plan changes. This is often when new rates are applied.
You’ve moved home or changed occupancy
Final bills, disputed reads, or delays in closing an account can create balances. Repayment arrangements may be set when the supplier confirms the debt.
Regional note: Ofgem regulation applies to Great Britain (England, Scotland, Wales). Northern Ireland has a different regulatory framework. If you’re in NI, tariffs and debt processes can differ.
How debt repayment appears on your energy bill or statement
Suppliers label repayment in different ways. If you’re unsure what you’re paying for, look for line items similar to the examples below and match them to your payment method.
| Where you see it | Common wording | What it means | What to check |
|---|---|---|---|
| Direct Debit breakdown | Debt repayment / arrears / balance recovery | Extra amount added to reduce your outstanding balance | How long the plan lasts, whether it’s reviewed, and if it’s affordable |
| Prepayment meter (top-up statement) | Debt deduction / weekly debt / recovery rate | A set deduction taken before credit is available for energy | Deduction amount, emergency credit rules, and any support credit |
| Account messages / letters | Payment plan / arrangement / catch-up payment | The supplier’s plan for clearing arrears over time | Start date, review date, missed-payment consequences, complaint route |
Tip: If your bill is estimated, your Direct Debit may be higher than necessary. Submitting accurate meter readings (or checking your smart meter is communicating) can prevent “over-repayment” and reduce the chance of large adjustments later.
What to do now (before 2026 repayment rate changes hit your bill)
If you’re repaying debt, the best time to act is before your next Direct Debit review or repayment plan renewal. Use the steps below to reduce surprises and keep payments affordable.
- Check your current balance and payment breakdown. Log in to your supplier account and note: arrears amount, repayment amount, and next review date.
- Confirm meter accuracy. Submit manual readings if needed, or check your smart meter is sending reads. Incorrect estimates can inflate repayments.
- Ask what would change under new repayment rates. Use the wording: “Please explain the repayment rate you’ve applied and how affordability is assessed.”
- Request an affordability review if payments are too high. If you’re struggling, ask for a lower repayment amount and a longer plan. Keep a record of what you’re offered.
- Compare whole-of-market tariffs. If switching is possible in your situation, a cheaper tariff can reduce the ongoing cost of energy even while you repay debt.
Questions to ask your supplier
- How much of my monthly payment is for usage vs debt repayment?
- What repayment rate have you applied, and why?
- When will you review it next, and what triggers a change?
- Can you spread repayment over a longer period to reduce the monthly amount?
- Are there any support schemes I qualify for (e.g. priority services, hardship support, trust funds)?
Checks before switching
- Is the debt on your current supplier account, and is it agreed or disputed?
- Are you on a prepayment meter with debt recovery active?
- Would you need to clear the balance first, or can you move under a managed process?
- Are exit fees or fixed-term conditions relevant to your tariff?
Common mistake: focusing only on p/kWh unit rates. If your repayment amount is being increased, the biggest difference to your monthly bill could come from the repayment plan, not the tariff. Deal with both.
Practical examples: how a repayment rate can affect monthly bills
Below are simple examples to show how repayment changes can affect your monthly payment. Figures are illustrative only and not a quote.
| Scenario | Energy usage portion | Debt repayment portion | Total monthly payment | What changes in 2026 could do |
|---|---|---|---|---|
| Direct Debit, stable usage | £105 | £15 | £120 | If repayment rises to £25, total becomes £130 without tariff changing. |
| Cheaper tariff found | £95 | £15 | £110 | Tariff savings help offset repayment increases and reduce the pressure on your budget. |
| Prepayment with weekly deduction | Varies with top-ups | £6/week | Less credit for energy | If deduction rises, you may need to top up more often to maintain the same usage. |
Illustrations only. Your figures depend on tariff, consumption, balance, meter type and supplier policy. Always confirm your repayment plan in writing.
FAQs: Ofgem debt repayment rate changes and 2026 energy bills
Will my energy bill definitely increase in 2026?
Not necessarily. A repayment-rate change can alter the repayment portion of your plan. Your total payment depends on your usage, tariff rates, and the repayment amount your supplier applies after reviewing affordability and debt level.
Can I ask for a lower repayment amount?
Yes. If the repayment amount is unaffordable, ask your supplier for an affordability review and propose a sustainable amount. Keep notes and request confirmation of the agreed plan.
Does switching supplier remove my energy debt?
Typically no. Debt remains payable. In some cases, debt can limit switching or require a specific process. If you’re unsure, compare tariffs first and then check the switching conditions for your meter type and account status.
I’m on a prepayment meter—what changes for me?
With prepayment, debt is usually collected through deductions. If deduction rates change, you may see less available credit for energy after topping up. Ask your supplier what your current deduction rate is and when it can be reviewed.
What if I disagree with the debt amount?
Raise it with your supplier and ask for a breakdown of charges, reads, and dates. If it isn’t resolved, use the supplier’s complaints process. Keep evidence (photos of meter reads, tenancy dates, bills).
How can EnergyPlus help?
We compare home energy tariffs across the market and help you identify potential savings on your ongoing usage costs, plus share practical next steps for managing repayments with your supplier.
Helpful checklist for your next call
- Your current tariff name and whether it’s fixed or variable
- Balance owed and when it started
- Payment method (Direct Debit, receipt of bill, prepayment)
- Latest meter reads and whether they’re actual or estimated
- Your target monthly payment you can reliably afford
Trust & social proof
"The form was quick. I got a clear explanation of how my repayment amount was affecting my Direct Debit, plus alternatives to reduce my ongoing cost."
Home energy customer, Greater Manchester
"I didn’t realise my bill increase wasn’t the tariff—it was the arrears repayment line. Comparing tariffs helped me plan my budget."
Home energy customer, West Yorkshire
"Whole-of-market comparison made it easier to see what was available and what wasn’t. Straightforward and practical advice."
Home energy customer, Kent
Our approach: whole-of-market comparison for UK households, with clear next steps. We focus on accuracy (postcode-based availability), readability, and accessible support options if you’re in repayment.
Ready to compare and reduce the pressure on your monthly payments?
If Ofgem debt repayment rate changes in 2026 could affect your plan, taking action now can help: confirm your repayment terms, reduce ongoing costs where possible, and avoid surprises at your next review.
- Whole-of-market home energy comparison
- Clear next steps for repayments and affordability reviews
- Postcode-based options across Great Britain
Start your comparison
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