21 December 2023 , 12:32
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EDF customers who are classed as vulnerable or struggling financially could have their energy debts wiped this winter.
The major energy provider, which has 3.7million customers in the UK, is offering the help through its "Fresh Start" initiative. EDF said the average amount of debt that could be wiped is around £1,250.
The help is being offered to vulnerable or struggling customers between now and the end of March 2024. If you’re eligible for the scheme, you’ll be contacted by EDF.
EDF is also offering more support to prepayment customers, in instances where the energy firm is concerned a customer might be self-disconnecting. Customers will be identified based on the information available to EDF on the status of vulnerabilities, as well as evidence of ongoing financial difficulty.
For example, this could be based on applications to the EDF Customer Support Fund, Warm Home Discount eligibility and continuous attempts to make payments. It comes as energy bills are set to rise again in January, when the new higher Ofgem price cap kicks in.
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Ofgem has announced its price cap will rise to £1,928 on January 1, 2024. This will remain in place until March 31, when the price cap will be updated again. The price cap sets the maximum rate energy firms can charge per kilowatt (kWh) hour for gas and electricity you use, along with standing charges. Standing charges are what you have to pay no matter how much energy you use.
The headline figure is what a direct debit customer with "typical energy consumption" can expect to pay each year based on wholesale energy prices. The price cap is slightly different if you're a prepayment customer, or if you pay on receipt of bill.
But in better news, the energy price cap is predicted to fall by £268 a year as of next April, according to analysts, giving hope for struggling households. Consultancy firm Cornwall Insight has released its latest price cap predictions.
The research group says annual energy bills could fall by 14% to £1,660 in April 2024 - this would be the lowest point in a little over two years. Going forward, Cornwall Insight expects the cap to drop even further to £1,590 in July before tipping back up to £1,640 as of October 2024.