Ofgem announces plans to hike energy price cap by £16 for all households to recover debt
manchestereveningnews.co.ukOfgem has announced plans to increase the energy price cap by £16 next year to recover 'bad debt'. The energy regulator said it was concerned over the pressure from energy customers who owe money which is unlikely to be repaid.
In response, the new measures are intended to reduce the burden of this debt on the industry. A consultation from Ofgem set out a proposal to introduce a 'one-off' price cap increase of £16 - or £1.33 a month - which will be applied from April 2024 to March 2025.
Ofgem said the change to the price cap will help energy firms have the necessary resources to support customers who are struggling with debt. Read more: 'Ultra fast' broadband provider that's cheaper and faster than Sky launches rare £800 saving Read more: Aldi's message to shoppers as £7.50 Christmas turkeys to go on sale next week The energy price cap is already rising to £1,928 from January 1, 2024 - a five per cent increase on the current cap.
Figures released by Ofgem today state that energy debt has almost reached £3 billion, which it states is the highest level ever recorded.
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