Displaying items by tag: Ofgem

Gas and electricity bills for millions across England, Scotland, and Wales rose 2% this week under Ofgem’s new price cap, bringing the typical annual bill to £1,755. With household debt to suppliers at a record £4.4bn, campaigners warn vulnerable families face another harsh winter. Energy UK says current support, such as emergency vouchers and debt write-offs, varies widely and is insufficient. They urge the Government to establish a long-term targeted scheme, potentially funded by taxation, to close the 'fuel poverty gap’. The Government points to measures including the Warm Home Discount, offering £150 off for one in five households, and promises a major home upgrade programme to improve energy efficiency in five million homes. Pensioners on lower incomes will also receive restored winter fuel payments after a U-turn. Ofgem is considering a debt relief support scheme to address unpayable arrears.

Published in British Isles
Thursday, 12 December 2024 22:39

Energy bills shake-up announced

Ofgem has announced plans to offer 'no standing charge' energy tariffs and provide debt relief for struggling households. The standing charge, a fixed daily fee averaging 92p, has risen significantly in recent years and disproportionately impacts low-energy users and prepayment meter customers. The new tariffs will eliminate these charges, though higher unit rates for gas and electricity may offset savings for higher energy users. Additionally, Ofgem is proposing debt relief measures, including partial or full debt write-offs and debt-matching schemes, where suppliers match customers' repayments to reduce arrears. With energy debt exceeding £3.8 billion and average arrears rising 37% in the past year, these changes aim to alleviate financial strain on vulnerable households. Funding for the initiatives will be spread across network charges and energy suppliers, with plans to implement zero-standing charge tariffs by next winter. Ofgem also encourages households to register for support programs like the Priority Services Register and contact suppliers early if facing energy debt.

Published in British Isles
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