Water, energy and broadband regulators should do more to fulfil their critical role in supporting consumers struggling to afford their bills, according to a new report, following an inquiry informed by evidence from expert witnesses Martin Lewis, Citizens Advice and the Consumer Council for Water. The government’s Public Accounts Committee (PAC), which conducted the inquiry and report, lacks confidence that water regulator Ofwat, energy regulator Ofgem and broadband regulator Ofcom are doing enough to help consumers in need.
The report focuses on the substantial problem of debt, which, with energy and water bills set to rise further, is set to worsen. Consumer debt to energy and water companies totalled £7.2bn in March ’25 – but despite the severity of the situation, regulators do not have a comprehensive view of a person’s debt across energy, water and broadband. When people begin to struggle financially, early identification of problems and intervention can be key to helping with debt.
The PAC is recommending regulators work together with government to help companies proactively identify those in need of support. They say this should be done with a view to making discounted tariffs a default for the most financially vulnerable, and the creation of a single central register of customer allowing needs and data to be shared between companies across sectors. The report also identifies gaps in consumer protection in water and broadband; the government should lay out when and how it will introduce a statutory water ombudsman to support customers with complaints, and an organisation with responsibility for providing free advice to telecoms consumers.
Only 6% of water customers in England and Wales, and fewer than 9% of eligible broadband customers, are on social tariffs, when many millions more could be eligible. Elsewhere, 13% of households have taken up energy and water support for those with additional communication, safety and access needs – an estimated half of households could be eligible.
The inquiry further found that the current system relies too heavily on vulnerable customers being willing and able to repeat personal information about their financial circumstances to their providers, which they are fearful about doing. Customers must also navigate an inaccessible landscape of confusing terminology to establish their eligibility, and can increasingly become stuck in a cycle of trying to ask for help as companies turn to the use of AI chatbots. The PAC is calling on regulators to show how they will help bring about a ‘tell us once’ approach for consumers across all three sectors so that people do not have to tell multiple suppliers about their personal circumstances, and how they will use their powers more forcefully to improve suppliers’ communications with customers.
Sir Geoffrey Clifton-Brown MP, Chair of the Public Accounts Committee, said:
“Bills are increasing. Energy debt is correspondingly rising. We are in the midst of a continuing cost of living crisis, with little sign that the lookout globally will become any more forgiving for the vulnerable any time soon. Some of the economic and geopolitical drivers of this are unavoidable. There is nothing unavoidable about energy, water and broadband consumers being allowed to drift into debt through poor communication and coordination from and between suppliers, regulators and the government.
“In such circumstances, with this report, our Committee is asking Ofgem, Ofwat and Ofcom if they are going to sit back and watch as consumers navigate a confusing and inaccessible landscape – or will they and government work together to provide a united front for the public that could actually make a difference to rising hardship? How forceful are they willing to be in the use of their powers to make sure companies do everything possible to make sure people who need and are eligible for help, receive it? With their response to this report, we shall find out.”