CRU publishes updated customer protection measures for winter 2024/2025

Read the full CRU winter protection measures here.

We have published a review on the effectiveness of customer protection measures over the past winter, as well as deciding the measures to be retained for the forthcoming winter. 

While price reductions have taken place and the expectation that more reductions will follow, domestic electricity and gas tariffs remain higher than they were in January 2021, meaning that continued additional supports for customers are necessary. 

The additional protection measures originally identified by the CRU in 2022 have been monitored with data and feedback sought by the CRU from customer representative groups, network operators and suppliers, to fully understand the impact for all customers groups, including vulnerable customers.   

For the coming winter period in 2024/25, some of the key measures that will remain in place are:

• Reduced Debt Repayment on Pay-As-You-Go Top-Ups: The debt repayment level on Pay-As-You-Go meters will remain at a maximum level of 10%.
• Discounted Tariffs for Customers on Financial Hardship Meters: Suppliers will be required to continue to automatically place customers with a financial hardship meter on the most economic tariff available.  
• Minimum Timelines for Debt Repayment Plans: Suppliers will still be required to offer customers more flexible payment plans, extended to a minimum of 18 months for this year instead of 24 months to encourage greater engagement by customers with suppliers.
• Promotion of Vulnerable Customer Register: Suppliers will be required to actively promote the vulnerable customer register and the protections it offers, promote how customers can have a ‘nominated representative’ manage their account, and how customers can sign-up for level payment plans.  

The disconnection moratorium for registered vulnerable customers will remain in place from 1 November 2024 – 31 March 2025. The winter disconnection moratorium for all other domestic customers will be in place from 9 December 2024 – 17 January 2025. 

The CRU monitored the effectiveness of the additional customer protection measures through an analysis of the data submitted by suppliers and network operators, under the CRU’s retail market monitoring activities. The data has shown that arrears levels are trending at historically high levels, both in terms of the value of arrears levels overall and the average value of a customer’s account in arrears.  

While moratoriums provide customers with protection from disconnection during the winter period, the data has shown that this, in addition to longer repayment periods, discourages some customers from engaging with their supplier in terms of reducing their debt and this does not benefit customers in the medium term as debt levels can continue to increase.  

The customer protections are complemented by the supplier Energy Engage Code, that provides a further level of security for domestic electricity and gas customers. This Code encourages customers, who are having difficulty in paying a bill, to engage with their supplier regarding the management of debt. Under this code, suppliers will not disconnect customers who engage with them and must provide every opportunity to customers to avoid disconnection.

There have been three Government Electricity Credit Schemes since March 2022, which have reduced the domestic electricity arrears levels during this continued period of very high prices. Should these schemes be discontinued and no further supports for domestic electricity customers be made available, it is probable that arrears levels will see a further significant increase.   

Commenting on the announcement, Karen Trant, Director of Customer Policy and Protection said: “The CRU is aware of the challenges that high energy prices and arrears, continue to have on customers. Our analysis shows that the enhanced measures have had a significant impact on protecting customers during winter 2024. As a result, many of the measures will remain in place until summer 2025, after which a further review will be carried out. We will continue to monitor the impact on customers, including price trends and the levels of arrears over the coming months.”