EDF has pledged to wipe the energy bill debt of some of its most vulnerable customers this winter as affordability pressures rise.
The support comes as part of the energy supplier’s ‘Fresh Start’ initiative, which will see hard-up customers receiving an average of £1,250.
Customers do not need to apply for the scheme and EDF will contact those eligible in the coming weeks.
The initiative 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.
Philippe Commaret, MD of customers at EDF, commented: “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.”
Mr Commaret added: “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.”
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 showed that between December 2022 and September 2023, debt with no plan in place increased by 52 percent.
This comes as new research by EDF showed that 65 percent of households do not want to see bills increase to cover costs generated by other customers. Energy is featured as the top household cost that people are worrying about most (66 percent).
This winter, EDF has boosted support available by £15million, creating a total support fund of more than £40million for the coming year, which includes providing debt relief and payment matching.
However, the supplier noted that it is unable to offer this support unilaterally and indefinitely.
Customers eligible for EDF’s ‘fresh start’ debt clearance scheme will be contacted by the company in the coming weeks.
Customers will be identified based on the information available to EDF on the status of vulnerabilities, as well as evidence of ongoing financial difficulty (applications to EDF’s Customer Support Fund, Warm Home Discount eligibility and continuous attempts to make payments).
Support will also be provided in instances where EDF is concerned a customer might be self-disconnecting.
