OFGEM PROPOSES HIKING HOUSEHOLD ENERGY BILLS – Energy regulator is proposing a one-off increase of £16 in the price cap
Ofgem is to hike household energy bills to help protect suppliers after consumer debts surged to a record £3bn.
The energy regulator is proposing a one-off increase of £16 in the price cap, equivalent to around £1.33 a month, to be paid between April 2024 and March 2025.
Last month, Ofgem set the price cap from the current £1,834 for a typical dual-fuel household to £1,928 from January 1.
But energy prices remain high compared to historical levels and energy debt has hit its highest ever level due to the prices and wider cost-of-living pressures.
Ofgem said the sheer scale of the debt could leave suppliers struggling to collect it – meaning they needed extra resources to “meet the strict regulations Ofgem has in place around how they treat customers facing payment difficulties”.
The extra money would be used to ensure suppliers could afford to support customers with measures such as setting up payment plans, writing off unmanageable debt on a case-by-case basis, and working out affordable repayment holidays.”
