Energy UK has today proposed a set of measures, including government-backed loans for energy companies to keep bills down for the whole next year.

The leading trade association has urged the government to increase the energy bill support up from the current £400 discount. 

It believes that this would be the “most practical” immediate solution that could take the pressure off customers’ shoulders.

Energy UK has also called for a ‘deficit tariff scheme’, with government-backed loans used to keep bills down throughout 2023.

The association noted that these loans could cover the rising cost of wholesale energy for suppliers, allowing these costs to be spread over a much longer period of up to 15 years.

This is not the first time, such a measure has been proposed – a few days ago, ScottishPower and E.ON pitched the idea during a government meeting.

Dhara Vyas, Energy UK’s Director of Advocacy, said: “Time is running very short ahead of October and we know many customers are already struggling after the last price rise – so the predicted increases will simply be unaffordable for millions of households. 

“The high cost of energy, driven by record wholesale gas prices that continue to rise, is unavoidable at present. Suppliers need to recoup these costs otherwise we will see more of them go out of business, adding more expenses and disruption to customers.”

Article source: https://www.energylivenews.com/2022/08/18/industry-calls-for-government-backed-loans-to-ease-energy-bill-pain/