The BBC recently reported that millions of UK households are now in debt to their energy supplier, with arrears at record levels. This crisis is not just a consumer issue. For energy companies, rising unpaid bills undermine cash flow, add operational costs, and create regulatory pressure to demonstrate fair treatment of vulnerable customers.
At the heart of the challenge is an outdated model of debt recovery. Too often, repayment plans are rigid, one-size-fits-all arrangements that don’t reflect the financial reality of households living with volatile income and high essential costs. Customers fall further behind, suppliers spend more on chasing debt, and the cycle continues.
Why a different approach is needed
Traditional credit and collections frameworks are blunt instruments. They fail to balance two competing needs: the supplier’s requirement to recover outstanding bills and the consumer’s need for repayment plans that are affordable, transparent, and fair.
The FCA’s Consumer Duty makes this tension even sharper. Energy companies are legally obliged to offer repayment plans that take account of a customer’s circumstances. But putting that into practice requires new tools.
Where programmable payments can help
Raimac’s programmable payments platform gives suppliers the ability to offer affordable, customisable repayment plans at scale. Instead of rigid schedules, our technology enables:
- Intelligent instalments: repayment dates and amounts that flex in line with customer income cycles.
- Automated collections: suppliers set the rules, and the platform manages payments and pro-rata distributions in real time.
- Transparency for customers: a simple interface that shows clearly what will be paid, when, and how quickly arrears will reduce.
The result is better outcomes for both sides. Customers are more likely to keep up with affordable plans that they’ve helped configure. Suppliers benefit from higher recovery rates, fewer defaults, and stronger evidence of Consumer Duty compliance.
Towards an energy debt-free future
Energy debt is a structural issue that will not be solved by short-term relief or blunt enforcement. It needs new infrastructure.
Programmable payments shift the model from chasing late bills to supporting customers on the journey to becoming debt free. By embedding repayment flexibility into the fabric of billing, utilities can ease the burden on struggling households while protecting their own balance sheets.
At Raimac, we believe technology can help energy suppliers break the cycle of arrears, rebuild trust with customers, and create a fairer, more sustainable approach to household energy debt.
We are already engaging with utilities and local authorities who want to modernise their approach to debt recovery. If you would like to see how programmable payments could be embedded into your billing and collections processes, get in touch with our team to schedule a demo.
