StepChange and other charities are calling on the Uk Government to do more to help people with energy debt.
Ofgem has announced it is launching a consultation on options to protect the energy market after figures from the summer showed that debt reached a record £2.6 billion due to soaring wholesale prices and cost of living pressures on households. The energy regulator said it was considering a one-off increase in the price cap that could see households pay up to £17 a year more - or £1.
The £2.6 billion figure relates only to debt and arrears and is therefore not offset by credit built up by other customers and held on their accounts. The regulator is consulting the energy industry, consumer groups and the wider public to look at the options. "We must consider the fairest way to maintain a stable energy market and we will do this in consultation with all our partners to ensure we are protecting the most vulnerable households."
Winter heating bill help Richard Lane, Director of External Affairs at StepChange Debt Charity, said: “Ofgem’s proposals to increase the price cap from April to cover energy debts reinforces the need for the UK Government to take action.
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