As the UK energy market faces unprecedented pressure, Ofgem’s proposed Debt Relief Scheme represents a defining shift in how the industry manages energy debt and supports vulnerable customers. Expected to launch in 2026, the scheme could see up to £500 million of energy debt written off to help households struggling since the 2022 energy crisis.
For energy suppliers, this is both a challenge and an opportunity: to act early, protect their customer base, and demonstrate regulatory leadership.
Proactive readiness with Arum Analytics
At Arum, our Analytics team is already working with leading energy companies to prepare for this next phase of regulation. Using advanced vulnerability analytics and data-driven debt segmentation, we help suppliers get ahead of Ofgem’s requirements, identifying customers most in need, reducing exposure to bad debt, and proving proactive compliance.
Our vulnerability scorecards combine internal customer data with multi-bureau and third-party datasets to build a true picture of financial resilience. This enables suppliers to segment portfolios effectively, prioritise early engagement, and evidence to Ofgem that they are acting to prevent debt escalation rather than simply reacting to it.
How Arum’s Analytics can help energy providers
Working with Arum Analytics enables energy suppliers to:
- Identify vulnerable households early, before regulatory enforcement or write-off requirements.
- Increase repayment plan ‘stickability’ and reduce cost-to-serve through better segmentation.
- Demonstrate readiness to Ofgem and internal boards with measurable improvements in customer outcomes.
- Enhance compliance and customer trust while improving overall collections performance.
Our clients in the energy sector have already seen significant uplift in collection rates, lower arrears levels, and stronger brand reputation by embedding data-led strategies ahead of regulation.
Understanding Ofgem’s Debt Relief Scheme
Ofgem’s Debt Relief Scheme aims to help around 195,000 households manage arrears built up between April 2022 and March 2024. The first phase, launching in 2026, will focus on customers receiving means-tested benefits with more than £100 in eligible energy debt.
Suppliers will identify these customers automatically through data-matching with the Department for Work and Pensions (DWP) and the Warm Home Discount (WHD) database, ensuring consistent and fair access to relief.
With £4.4 billion in total UK energy debt, the urgency is clear. For every household (even those up-to-date on bills), this debt drives higher energy prices and limits industry innovation. By taking early, analytics-led action, energy companies can lessen the impact of the scheme, demonstrate regulatory cooperation, and build long-term customer value.
Partnering with Arum to get ahead
Arum’s analytics and advisory solutions help utilities and energy suppliers prepare for regulatory change while delivering fair outcomes for consumers. Our Ofgem-ready frameworks integrate seamlessly with your collections processes, providing visibility, evidence, and confidence ahead of the 2026 launch.
Whether you’re shaping your compliance roadmap, planning targeted customer outreach, or improving portfolio segmentation, Arum’s experts can help you turn data into action.
Find out how Arum analytics can help you to get ahead of Ofgem's Debt Relief Scheme
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About the author
Owen Atkinson
Head of Delivery Services
Owen joined Arum in 2015 as a consultant and has progressed to being Arum’s Head of Delivery Services. He leads a team working across multiple geographies, industries and project types, from managed service offerings to support across collections strategy and system transformation programmes. Owen has 18 years’ experience in collections and recoveries and has worked with over 80 different clients across industry sectors and geographies.