• iconNews
  • videos
  • entertainment
  • Home
  • News
    • UK News
    • US News
    • Australia
    • Ireland
    • World News
    • Weird News
    • Viral News
    • Sport
    • Technology
    • Science
    • True Crime
    • Travel
  • Entertainment
    • Celebrity
    • TV & Film
    • Netflix
    • Music
    • Gaming
    • TikTok
  • LAD Originals
    • Say Maaate to a Mate
    • Daily Ladness
    • Lad Files
    • UOKM8?
    • FreeToBe
    • Extinct
    • Citizen Reef
  • Advertise
  • Terms
  • Privacy & Cookies
  • LADbible Group
  • UNILAD
  • SPORTbible
  • GAMINGbible
  • Tyla
  • UNILAD Tech
  • FOODbible
  • License Our Content
  • About Us & Contact
  • Jobs
  • Latest
  • Topics A-Z
  • Authors
Facebook
Instagram
X
Threads
Snapchat
TikTok
YouTube

LAD Entertainment

YouTube

LAD Stories

Submit Your Content
Brits could soon be forced to make yearly payment to stop energy companies going bust

Home> News> UK News

Published 16:14 12 Oct 2023 GMT+1

Brits could soon be forced to make yearly payment to stop energy companies going bust

Industry watchdog Ofgem has warned that providers are struggling to stay afloat due to record-high consumer debt.

Olivia Burke

Olivia Burke

When you're forking out for astronomical energy bills in the midst of a cost of living crisis, spare a thought for the suppliers.

Yes, by the way, that was indeed sarcasm.

According to industry watchdog Ofgem, energy suppliers are teetering on the edge of disaster - so you might have to put your hand in your pocket to help them out.

Brits could soon be forced to pay an extra charge per year on top of their soaring energy bills to stop providers going bust.

Energy debts climbed to a whopping £2.6 billion over the summer - the highest ever amount - due to rising prices and the current economic climate.

Advert

Businesses have also been buckling under the pressure of the mounting consumer debts.

Around 30 providers have already gone out of business, so energy bigwigs are keen to nip the demise of providers in the bud as soon as possible.

Ofgem is 'considering' adding an extra £17 charge a year on household's energy bills - or £1.50 a month - to protect the struggling energy market.

Energy suppliers are crumbling under the pressure of consumer debt.
Getty Stock Image

The aim is to "reduce the risk of energy firms going bust or leaving the market as a result of unrecoverable debt."

Advert

The regulator warned that households could end up stumping up even more cash in the long run if they don't take action now.

The standards of services from energy firms would also slip if firms continue to go out of business, Ofgem said.

But any rise in payments would not come into force until April next year so people aren't crippled by the cost of staying warm this winter.

Ofgem's director general for markets, Tim Jarvis, said of the plans: "We know that households across the country are struggling with wider cost of living challenges, including energy, so any decision to add costs to the price cap is not one we take lightly.

Brits could end up coughing up another £17 a year.
Getty Stock Image

Advert

"However, the scale of unrecoverable debt and the potential risk of suppliers leaving the market or going bust, which passes on even greater costs to households, means we must look at all the regulatory options available to us."

He said they are determined to find the 'fairest way to maintain a stable energy market'.

A consultation has been launched on the proposals, while Ofgem iron out the details of how the extra charge would work.

Industry figures, consumer groups and the general public will all be able to weigh in on the plans.

Speaking of energy costs, those eligible for winter fuel payments are set to start receiving funds in the coming weeks.

Featured Image Credit: Getty Stock Image

Topics: Cost of Living, UK News, Money

Olivia Burke
Olivia Burke

Olivia is a journalist at LADbible Group with more than five years of experience and has worked for a number of top publishers, including News UK. She also enjoys writing food reviews (as well as the eating part). She is a stereotypical reality TV addict, but still finds time for a serious documentary.

X

@livburke_

Advert

Advert

Advert

Choose your content:

22 mins ago
an hour ago
10 hours ago
11 hours ago
  • 22 mins ago

    Woman nearly died after receiving 'new type of botox' in the UK

    She spent days in intensive care

    News
  • an hour ago

    Diddy had intense reaction when mixed verdict was read out in court as rapper remains in jail

    The rapper was acquitted of three out of five charges by a New York jury

    News
  • 10 hours ago

    Judge rules Sean ‘Diddy’ Combs will remain behind bars as bail is denied

    The hip hop producer has been in federal detention since September 2024

    News

    breaking

  • 11 hours ago

    Met Police advice on 'sextortion' after boy, 14, dies after thinking he was flirting with woman online

    The teenager ended his life after being blackmailed over intimate images he'd sent online

    News
  • Exact amount you'll need in savings at age 30 in order to be able to retire has been revealed
  • How much average person in UK has in savings by age as 'exact amount you need in 30s' revealed
  • Full list of companies in your area that are giving workers a yearly pay rise of up to £1,500 from today
  • Half a million Brits are being given up to £1,500 yearly pay rise from today