What does offering to reduce the maximum debt repayment for consumers mean in practical terms?

Consumers who use prepayment meters and are in debt to their suppliers are expected to pay off some of what they owe when topping up their gas or electricity, as part of their debt repayment arrangement. 

Under the existing Code of Practice on Payment of Bills overseen by the Utility Regulator, a supplier can deduct up to a maximum of 40% from a purchase of electricity or gas to reduce debt. However, by signing up to the Consumer Energy Charter, suppliers have agreed to contact all consumers on the maximum repayment amount to offer to move them to a 20% repayment rate. 

If you are a consumer who is new to debt repayment plans, repayment rates will not be set above 20% unless requested by you. If you are on a 20% repayment rate, this means at least 80% of any new top up will go towards securing additional supplies of gas or electricity. 

Suppliers will continue to work with consumers to ensure that any debt arrangements fit their own specific circumstances based on their ability to pay. They will also discuss options available to you.