Households may have to pay an extra £30 a year on top of their bills to help energy suppliers recover debts.
Ofgem is reportedly considering the household charge to help suppliers recoup lost cash caused by others missing payments following curbs on prepayment meter (PPM) installations.
The annual charge is believed to be £30 and could be added to energy bills from October this year report the Times.
The publication also reports that the levy could even be higher for four million households that pay their energy bills by standard credit - so pay their bills by cash or cheque on receipt of bill.
The energy regulator's Price Cap already sets out how much a supplier can charge as an allowance for bad debt.
Providers can currently charge customers around £200 a year more if they pay by standard credit.
This is because these households are "more likely" to fall into energy debt according to Ofgem.
Direct debit customers currently face a significantly smaller charge of around £30 extra to cover debt-related costs.
It is not clear how customers would be charged the additional levy.
An Ofgem spokeswoman told The Mirror: “We’re tightening up the rules on when and where pre-payment meters can be installed, which combined with the current pause on installations may result in higher debt levels in energy suppliers.
“These improved protections are needed, but we need to balance these with the potential impact on levels of bad debt.
"We’re seeking evidence on this now and will update in the coming months on any changes to the price cap that might be needed.”
In a statement to the Times, Ofgem said: "We recognise that the rules set out in our code of practice could result in fewer PPM installations and that, combined with the current suspension in involuntary PPM installations, this may contribute to higher levels of bad debt of around £30 a year for a household.”
Ofgem recently temporarily suspended all forced prepayment installations, before bringing in a new code of practice this year.
It was after a Times investigation revealed that a company used by British Gas to pursue debts was “breaking into” people’s homes to fit them.
With prepayment meters, energy companies are able to get court warrants which give them legal rights to enter people’s homes and fit prepayment meters if customers had not paid their bills.
However, under the new rules, energy suppliers must try to contact a customer at least 10 times before forcefully installing a PPM.
They must also conduct a "site welfare visit" before taking steps to install one.
PPM installations should also not take place where customers have severe health issues and in the homes of people aged 85 and over who live alone.
