Energy debt in the UK has skyrocketed to a record-breaking £2.6 billion, according to the latest figures released by the energy regulator.

This alarming surge is being attributed to the relentless rise in wholesale energy prices, the ongoing energy crisis and the broader challenges of an increased cost of living.

Ofgem has initiated a consultation to consider a one-time adjustment to the current energy price cap.

The proposed adjustment could temporarily raise average consumer bills by up to £17 per year, or approximately £1.50 per month.

Responding to the news, National Energy Action Chief Executive Adam Scorer has stressed the urgent need for additional targeted support, including the establishment of a “Help to Repay” scheme and a sustainable social tariff.

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.”

Article source: https://www.energylivenews.com/2023/10/12/energy-industry-respond-to-proposed-bill-increases/