Industry and consumer groups respond to Ofgem proposal to increase bills to pay for supplier debt

Following up a report yesterday on Ofgem confirming that energy debt has skyrocketed to £2.6bn, industry and consumer groups have voiced concerns over the broad approach of asking all consumers to help pay the debt down.

The huge rises in debt (the amount owed to suppliers from unpaid bills) was being attributed to both the increase in wholesale energy prices and wider cost of living pressures.

Ofgem has started a consultation on the proposal to levy a off surcharge to consumers of around £17.00 to help pay this debt down.

Responding to the news National Energy Action Chief Executive Adam Scorer re-affirmed the urgent need for additional targeted support, including the establishment of a “Help to Repay” scheme and a sustainable social tariff to help those sectors struggling the most.

Simon Francis, Coordinator of the End Fuel Poverty Coalition, said: “Households are struggling under the huge weight of energy debt – which has been caused through no fault of their own, but by record energy bills.

“All this time, energy firms have continued to profit from the misery of people racking up debt and living in cold damp homes.

“Rather than pass on more increases to energy bills, the government needs to work with energy firms to introduce a ‘help to repay’ scheme to help get Britain’s households back onto an even keel.”

Ofgem latest energy price cap reduced the price household’s pay for their energy but prices are expected to go back up in January 2024.

It’s really important as a business that you keep a track on what’s happening with prices in these extremely volatile times.

With prices due to stay at much higher levels for a number of years to come, our weekly price trends update is designed to help explain what the key drivers are and provide you with all of the information to make a well informed decision on when to agree your next contract.

If you need to compare prices for your meter now, please click here to see the latest rates for your meter.