A person wearing a protective face mask walks over Waterloo Bridge during morning rush hour in London, Britain, in this January 21 2022 file photo. Picture: REUTERS/HENRY NICHOLLS
Money owed by EON’s customers is expected to increase by 50% to £2.4bn by the end of the year, Michael Lewis, who runs the German company’s UK business, told a parliamentary committee last month. Centrica, Britain’s biggest supplier, meanwhile says 10% of its 7.2-million customers are already behind with payments.
While some politicians are calling for a tax on companies to subsidise consumers, the industry says it no longer has the financial cushion it once had. Profit margins for selling power and natural gas to households have been negative on average since 2019 as competition between suppliers and the price cap kept a lid on how much they could charge, according to a report by Oxera Consulting.
The price cap protects households not on a fixed-term tariff from being put on the most expensive deal. The regulator, Ofgem, plans to change how often it adjusts the level to four times a year. The adjustment should mean that suppliers can pass on costs more quickly to customers and avoid postponing price hikes.
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