Energy firm EDF has pledged to clear the debt of some of its most vulnerable customers this winter, whilst warning that Government and Ofgem must take urgent action to protect households from rising debt costs.

EDF will target vulnerable customers experiencing hardship with the opportunity to have their debt cleared as part of its ‘fresh start’ initiative, with eligible customers receiving an average of £1,250. Customers do not need to apply to the scheme and EDF will contact eligible customers in the coming weeks.

This comes as pressure grows over rising debt levels, which could increase bills for everyone to cover the costs of those who cannot or do not pay. Currently the surcharge is up to £120 on a typical bill.

In October, Ofgem indicated that it was reviewing a potential increase to debt costs on bills as energy debt reached its 'highest ever level'. EDF data shows that between December 2022 and September 2023, debt with no plan in place increased by 52%.


This comes as new research by EDF shows that 65% of households do not want to see bills increase to cover costs generated by other customers. Energy featured as the top household cost that people are worrying about most (66%).

This winter EDF has boosted support available by £15m, creating a total support fund of more than £40m for the coming year, which includes providing debt relief and payment matching. However, the supplier is unable to offer this support unilaterally and indefinitely.

EDF is calling on Ofgem and the Government to:

• Push ahead with plans to consult on a targeted social tariff as soon as possible

• Create a central database of vulnerable households using government data, building on plans for a cross utility Priority Services Register. This database would help suppliers target support such as a social tariff and automatically flag up customers where a relevant vulnerability would exclude them, for example, from involuntary prepay actions.

Philippe Commaret, MD of Customers at EDF, said: "More customers are falling deeper into debt with no real long-term solution in place to help them. Left unaddressed, the situation will drive up costs for all households, with other customers forced to pick-up the bill.

"We must make sure the most vulnerable in society are being protected and this includes stopping bills rising further. We’re taking action to help those in need, but vulnerable customers need a long-term, sustainable approach to tackle affordability."