Getting ahead of Ofgem's Debt Relief Scheme with arum Analytics

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.
• Detect home moves and unregistered occupier accounts sooner to prevent anonymous debt build-up.
• Strengthen controls that stop erroneous or unclaimed debt from accruing.
• Improve customer onboarding to ensure customers are matched with appropriate tariffs and billing terms.
• 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, customer trust, and 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.

Understanding the impact of home moves

Home moves are a significant driver of energy debt, as properties frequently default to unregistered "Occupier" accounts during the period between residents moving out and new customers registering. Debt can build unnoticed during this gap, leaving suppliers to absorb the cost of tracing new occupants and, in many cases, writing off unrecoverable balances. This hidden and often anonymous debt ultimately feeds into price cap calculations, adding financial pressure across the customer base.

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 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.