💡 Big News on Energy Bills! 💡
Struggling with energy debt? There’s a new plan from the energy regulator, Ofgem, that could bring some relief! A whopping £500 million of household energy debt could be wiped out, but there are a few conditions to meet.
Nearly 200,000 people on means-tested benefits might see their energy debt cancelled if they’ve racked up more than £100 between April 2022 and March 2024. So, if that’s you, keep an eye out as energy suppliers will be identifying eligible customers.
But wait, nothing’s completely free. This initiative would mean an additional £5 on everyone’s energy bill to cover the costs. Currently, households already pay around £52 a year as part of their energy cap tariff to address historical debts.
What’s the big picture? Energy debt has skyrocketed, with a record £4.4bn owed, leaving many with tough decisions between heating and eating. A new report from MPs suggests using “excess” profits from energy network companies to fund debt relief, but opinions are divided.
In addition, Ofgem is also looking into other measures like ensuring new tenants or homeowners register with an energy supplier to avoid accumulating anonymous charges. They’re considering making smart meters a requirement and switching them to prepayment mode to avoid disconnections.
This may be a first step in tackling the growing debt, but it’s a tough road ahead. Energy companies, charities, and officials agree that more needs to be done to make a meaningful impact.
Let us know your thoughts! Could this plan relieve the pressure, or does more need to happen? 💬🔌💷