Overview

• Ofgem, the energy industry regulator, is proposing a one-off increase of £16 in the energy price cap to help suppliers recover nearly £3bn in bad debts from customers struggling to pay their bills.
• The proposed increase would be levied at £1.33 a month on bills paid between April 2024 and March 2025.
• Energy debt has hit a record £3bn due to increases in wholesale energy prices and the wider cost of living crisis.
• The proposed plan does not include passing extra costs on to customers who use prepayment meters, as they do not build the same debt level as credit customers.
• Charities warn that millions of people are having to borrow money to pay essential bills at Christmas, with energy costs a key concern.