Households face paying extra on energy bills to cover customers’ bad debts under plans by the industry regulator.
Ofgem is proposing lifting the energy price cap by £16 between April next year and March 2025.
It estimates that debt levels for energy customers has risen to £2.9bn.
It estimates that debt levels for energy customers has risen to £2.9bn.
It means the typical household will pay £1,928 a year for gas and electricity, up from the current £1,834 for a dual-fuel home.
On Friday, Ofgem said: “We understand the distress that rising debt in energy has on people.”
However, it added: “Rising debt levels create costs for suppliers.”
Under the proposals, households using prepayment meters would not be charged the extra sum, which works out at £1.33 per month. These consumers pay as they go, meaning they cannot build up debt in the same way as households that are billed monthly.
Suppliers and consumers have until 17 January to submit responses to the plans.
Households face paying extra on energy bills to cover customers’ bad debts under plans by the industry regulator.
It estimates that debt levels for energy customers has risen to £2.9bn.
Ofgem is proposing lifting the energy price cap by £16 between April next year and March 2025.
It means the typical household will pay £1,928 a year for gas and electricity, up from the current £1,834 for a dual-fuel home.
It estimates that debt levels for energy customers has risen to £2.9bn.
It estimates that debt levels for energy customers has risen to £2.9bn.
It means the typical household will pay £1,928 a year for gas and electricity, up from the current £1,834 for a dual-fuel home.
On Friday, Ofgem said: “We understand the distress that rising debt in energy has on people.”
However, it added: “Rising debt levels create costs for suppliers.”
Under the proposals, households using prepayment meters would not be charged the extra sum, which works out at £1.33 per month. These consumers pay as they go, meaning they cannot build up debt in the same way as households that are billed monthly.
Suppliers and consumers have until 17 January to submit responses to the plans.
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