Ofgem, Britain’s energy watchdog, is considering a one-off increase to the energy price cap to help prevent energy suppliers from going bust.
The watchdog said it was considering a one-off increase in the price cap that could see households pay up to £17 a year more – or £1.50 a month – on average “to reduce the risk of energy firms going bust or leaving the market as a result of unrecoverable debt”. Tim Jarvis, director general for markets at Ofgem, said: “We know that households across the country are struggling with wider“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.cannot subsidise energy or force businesses to sell it at a loss and suppliers must be in a position to offer high-quality services to customers.
But Simon Francis, coordinator of the End Fuel Poverty Coalition, said the Government should instead look to help customers pay off energy debts.
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