Latest news with #Ofgem
Rhyl Journal
10 hours ago
- Business
- Rhyl Journal
Check your meter before Energy Price Cap changes on Monday
Consumers should submit readings before midnight on June 30 to avoid being overcharged, and to ensure that smart meters are working properly. Accurate readings prevent suppliers from estimating usage and applying previously higher prices to energy used after June 30, as Ofgem resets the cap on what suppliers can charge every three months. The latest change from £1,849 to a lower rate of £1,720 on July 1 represents a 7% drop, with average annual bills falling by around £122. Bad news! Ofgem's energy Price Cap that dictates the rate 2/3 homes in Eng, Scot & Wales pay, is now predicted to rise even more than before. I've knocked up this table showing today's new average predictions (from 3 big firms) for the Cap for someone on supposed 'typical use';… However, this is still £582 more than households were paying before the energy crisis began in autumn 2021. Advice Direct Scotland, a charity which runs the national energy advice service is among charities calling for a 'longer-term solution to the scourge of fuel poverty' with a UK-wide social energy tariff, to support low-income households which would automatically place the most vulnerable people on cheaper deals. It said that anyone unable to submit readings by June 30 should do so as close to the date as possible and advised taking a photo of the meter in case of disputes, and suggested checking for more favourable tariffs. The next price cap update will be announced by Ofgem in August, and many people are still struggling with record levels of debt. More on energy bills Conor Forbes, policy director at Advice Direct Scotland, says: 'Lower gas and electricity prices will come as a relief for households, but bills remain significantly higher than they were before the energy crisis began. 'It's important to submit meter readings before the new price cap comes into force, to prevent being overcharged. 'For extra peace of mind, take a dated photo of the meter. If you have a smart meter, make sure it's working. 'People can also take practical action by examining their bills, finding out how much they are paying, and checking if there are cheaper options available with other suppliers. 'Struggling customers should know they do not have to suffer in silence. Our expert team is on hand for anyone who needs help, no matter their circumstances. 'However, a longer-term solution to the scourge of fuel poverty is a UK-wide social energy tariff, which would automatically put vulnerable people on the cheapest deals.' Household energy debt has reached alarming levels, underscoring just how much pressure both consumers and suppliers are under. Overall arrears remain alarmingly high, with 75% of the total debt having no repayment plan in place. The average debt per customer is £1,200, exacerbating an already pressurised market and making it increasingly difficult for both customers and suppliers to manage rising costs. 'Today's figures from Ofgem show that household energy debt has continued to rise, with an increase of £300m in Q1 of 2025, having now grown for ten consecutive quarters," says Matt Turner-Tait, Senior Manager at specialist Energy & Utilities consultancy, BFY Group. "There have been some well-intended attempts by the government and regulatory bodies to relieve the issue – such as the Warm Home Discount becoming accessible to double the number of households previously, or Ofgem's prepayment meter review prompting suppliers to return £18.6m to customers through compensation and debt write offs. "However, these measures don't provide the much-needed long term relief that customers need. "Since the covid crisis, the UK retains the most expensive electricity bills out of 25 other European countries – which highlights the need for urgent, sustainable action at policy level. Suppliers can provide some relief to customers through early engagement, accessible advice, and smarter tools for managing bills - this will help customers retain some financial stability.'
Telegraph
10 hours ago
- Business
- Telegraph
Fears of £4bn raid on middle classes as energy debts soar
Household energy debts have topped £4bn for the first time, raising fears of a raid on the middle classes to cover the growing deficit. Total customer debt and arrears climbed to £4.15bn in the first three months of 2025, new figures from regulator Ofgem showed, up from £3.85bn in the final quarter of 2024. Energy debts have quadrupled since 2018 thanks to a toxic mix of rising gas prices and green levies that have sent bills soaring. Poorer households have been hit hardest because energy bills take up a greater proportion of their income. Growing debts are a significant problem for energy suppliers, which fund themselves through household bills. A drop in their income has raised fears that some smaller suppliers could be at risk of collapse. Ofgem launched a consultation on how to tackle the debt crisis last year, which included proposals to write off debts for the poorest households. If debts are written off, money needs to be raised from somewhere else to fill the gap. Options that are being weighed up by the regulator include extra charges on the bills of households not caught up in the crisis, levies on energy suppliers, or a mixture of both. It means millions of people could face higher bills to pay off the debts of others. The outcome of that review has not yet been published. In April, Jonathan Brearley, the chief executive of Ofgem, raised the prospect of charging richer households more for their energy to help pay for the costs of reaching net zero. 'We want to at least ask the question whether or not we can allocate costs more progressively,' he said. Economists typically use the term progressive to mean people pay higher tax rates as their income increases. Adam Berman, director of policy at Energy UK, the trade body for energy suppliers, said: 'A certain amount of debt, the debt which there really isn't any hope of recovery, that effectively gets socialised on everyone's energy bills. 'It's in the interest of society overall that we minimise debt because ultimately the more debt that we get, the more other consumers end up having to pay for that debt.' An Ofgem spokesman said: 'We know the cost of energy remains a huge challenge for many households and the growing issue of debt is one that requires urgent action from everyone across the sector and government.' The energy regulator said it was considering the introduction of a new debt relief scheme 'that could serve as a lifeline for millions of households struggling with unmanageable debts'. Andrew Bowie, the Conservative shadow energy spokesman, said: 'Consumer debt is rising because impossible net zero targets have driven up energy bills and distracted the Government from focusing on cutting them. 'As long as Miliband remains Energy Secretary with his impossible net-zero targets, bills will continue to rise. 'The country needs a serious approach to energy policy – one that tackles the root cause of our high energy prices, rather than raising taxes to pay for sticking-plaster solutions.' Earlier this month, the boss of British Gas called for Rachel Reeves to raise taxes to pay for net zero, rather than putting the cost on energy bills. Chris O'Shea, the boss of British Gas owner Centrica, said: 'At the moment, the costs for doing [net zero] come off consumer bills. There is an option to put that on general taxation and that's something that we would support at Centrica.'
Yahoo
10 hours ago
- Business
- Yahoo
Why you must take a meter reading on Monday - or risk being overcharged
Households are being urged to submit meter readings before the newly lowered Ofgem price cap comes into force on July 1 2025. Consumers should submit readings before midnight on June 30 to avoid being overcharged, and to ensure that smart meters are working properly. Accurate readings prevent suppliers from estimating usage and applying previously higher prices to energy used after June 30, as Ofgem resets the cap on what suppliers can charge every three months. The latest change from £1,849 to a lower rate of £1,720 on July 1 represents a 7% drop, with average annual bills falling by around £122. Bad news! Ofgem's energy Price Cap that dictates the rate 2/3 homes in Eng, Scot & Wales pay, is now predicted to rise even more than before. I've knocked up this table showing today's new average predictions (from 3 big firms) for the Cap for someone on supposed 'typical use';… — Martin Lewis (@MartinSLewis) June 24, 2025 However, this is still £582 more than households were paying before the energy crisis began in autumn 2021. Advice Direct Scotland, a charity which runs the national energy advice service is among charities calling for a 'longer-term solution to the scourge of fuel poverty' with a UK-wide social energy tariff, to support low-income households which would automatically place the most vulnerable people on cheaper deals. It said that anyone unable to submit readings by June 30 should do so as close to the date as possible and advised taking a photo of the meter in case of disputes, and suggested checking for more favourable tariffs. The next price cap update will be announced by Ofgem in August, and many people are still struggling with record levels of debt. More on energy bills Martin Lewis' key Energy Price Cap changes advice Energy Price Cap warning for bill payers this summer The energy 'back billing' rules Martin Lewis wants you to share Conor Forbes, policy director at Advice Direct Scotland, says: 'Lower gas and electricity prices will come as a relief for households, but bills remain significantly higher than they were before the energy crisis began. 'It's important to submit meter readings before the new price cap comes into force, to prevent being overcharged. 'For extra peace of mind, take a dated photo of the meter. If you have a smart meter, make sure it's working. 'People can also take practical action by examining their bills, finding out how much they are paying, and checking if there are cheaper options available with other suppliers. 'Struggling customers should know they do not have to suffer in silence. Our expert team is on hand for anyone who needs help, no matter their circumstances. 'However, a longer-term solution to the scourge of fuel poverty is a UK-wide social energy tariff, which would automatically put vulnerable people on the cheapest deals.' Household energy debt has reached alarming levels, underscoring just how much pressure both consumers and suppliers are under. Overall arrears remain alarmingly high, with 75% of the total debt having no repayment plan in place. The average debt per customer is £1,200, exacerbating an already pressurised market and making it increasingly difficult for both customers and suppliers to manage rising costs. 'Today's figures from Ofgem show that household energy debt has continued to rise, with an increase of £300m in Q1 of 2025, having now grown for ten consecutive quarters," says Matt Turner-Tait, Senior Manager at specialist Energy & Utilities consultancy, BFY Group. "There have been some well-intended attempts by the government and regulatory bodies to relieve the issue – such as the Warm Home Discount becoming accessible to double the number of households previously, or Ofgem's prepayment meter review prompting suppliers to return £18.6m to customers through compensation and debt write offs. "However, these measures don't provide the much-needed long term relief that customers need. "Since the covid crisis, the UK retains the most expensive electricity bills out of 25 other European countries – which highlights the need for urgent, sustainable action at policy level. Suppliers can provide some relief to customers through early engagement, accessible advice, and smarter tools for managing bills - this will help customers retain some financial stability.'
The Herald Scotland
11 hours ago
- Business
- The Herald Scotland
Check your meter before Energy Price Cap changes on Monday
Accurate readings prevent suppliers from estimating usage and applying previously higher prices to energy used after June 30, as Ofgem resets the cap on what suppliers can charge every three months. The latest change from £1,849 to a lower rate of £1,720 on July 1 represents a 7% drop, with average annual bills falling by around £122. Bad news! Ofgem's energy Price Cap that dictates the rate 2/3 homes in Eng, Scot & Wales pay, is now predicted to rise even more than before. I've knocked up this table showing today's new average predictions (from 3 big firms) for the Cap for someone on supposed 'typical use';… — Martin Lewis (@MartinSLewis) June 24, 2025 However, this is still £582 more than households were paying before the energy crisis began in autumn 2021. Advice Direct Scotland, a charity which runs the national energy advice service is among charities calling for a 'longer-term solution to the scourge of fuel poverty' with a UK-wide social energy tariff, to support low-income households which would automatically place the most vulnerable people on cheaper deals. It said that anyone unable to submit readings by June 30 should do so as close to the date as possible and advised taking a photo of the meter in case of disputes, and suggested checking for more favourable tariffs. The next price cap update will be announced by Ofgem in August, and many people are still struggling with record levels of debt. More on energy bills Conor Forbes, policy director at Advice Direct Scotland, says: 'Lower gas and electricity prices will come as a relief for households, but bills remain significantly higher than they were before the energy crisis began. 'It's important to submit meter readings before the new price cap comes into force, to prevent being overcharged. 'For extra peace of mind, take a dated photo of the meter. If you have a smart meter, make sure it's working. 'People can also take practical action by examining their bills, finding out how much they are paying, and checking if there are cheaper options available with other suppliers. 'Struggling customers should know they do not have to suffer in silence. Our expert team is on hand for anyone who needs help, no matter their circumstances. 'However, a longer-term solution to the scourge of fuel poverty is a UK-wide social energy tariff, which would automatically put vulnerable people on the cheapest deals.' Ofgem latest debt figures signal that the UK's energy affordability crisis is nearing breaking point Household energy debt has reached alarming levels, underscoring just how much pressure both consumers and suppliers are under. Overall arrears remain alarmingly high, with 75% of the total debt having no repayment plan in place. The average debt per customer is £1,200, exacerbating an already pressurised market and making it increasingly difficult for both customers and suppliers to manage rising costs. 'Today's figures from Ofgem show that household energy debt has continued to rise, with an increase of £300m in Q1 of 2025, having now grown for ten consecutive quarters," says Matt Turner-Tait, Senior Manager at specialist Energy & Utilities consultancy, BFY Group. "There have been some well-intended attempts by the government and regulatory bodies to relieve the issue – such as the Warm Home Discount becoming accessible to double the number of households previously, or Ofgem's prepayment meter review prompting suppliers to return £18.6m to customers through compensation and debt write offs. "However, these measures don't provide the much-needed long term relief that customers need. "Since the covid crisis, the UK retains the most expensive electricity bills out of 25 other European countries – which highlights the need for urgent, sustainable action at policy level. Suppliers can provide some relief to customers through early engagement, accessible advice, and smarter tools for managing bills - this will help customers retain some financial stability.'
Daily Mail
13 hours ago
- Business
- Daily Mail
EXCLUSIVE How much are YOU overpaying on your energy bills? New calculator reveals how much users could save
Millions of households could be overpaying their energy bills, a new calculator has revealed. The average energy bill for a dual-fuel home paying by direct debit increased from £1,738-a-year to £1,849 from April 1 after a 6.4 per cent increase in Ofgem 's energy price cap. But it is set to decrease by seven per cent on July 1, meaning the UK's 35 million households on a variable tariff will see their monthly gas and electricity payments fall. A typical household will see their annual bill fall from £1,849 to £1,720 from next month. This is £660 (28 per cent) lower than at the height of the energy crisis at the start of 2023 when the Government implemented the energy price guarantee. It will be a welcome drop in costs for millions of struggling Britons who are battling the cost of living crisis. But the predicted drop is slightly less than the previously forecast nine per cent fall following an easing of trade tensions. Now, a new calculator released today can help you work out how much you may have been overpaying on your energy bills. The price cap does not limit total bills because householders still pay for the amount of energy they consume. However, news of a fall in energy costs will come as a relief for households, who suffered through an 'awful April' of bill rises. And prices remain elevated with the upcoming level £152 (10 per cent) higher than the same period last year. The number of customers switching providers plummeted during the 2021-22 energy crisis as the cost of bills shot up, with rates still significantly below pre-crisis levels. Under-pressure households have also been hit with the biggest increase to water bills since at least February 1988, alongside steep rises across bills for council tax, mobile and broadband tariffs, as well as road tax However, experts at household money-saving firm are warning that millions of households who haven't recently switched providers that they're likely to be overpaying. Greg Marsh, household finance expert and CEO of said: 'The vast majority of households are overpaying on their bills – energy included. 'Most of us have no idea how much it's costing us. Energy companies know how hard it is to make sure we're on a fair deal. 'In fact, they hope we don't notice we could be saving and put up with paying more than we need to. It's not fair, and it's exactly why we started Nous. 'We regularly save our customers hundreds of pounds a year on bills because they didn't have the time or headspace to stay on top of things, and didn't realise how much they were wasting.'
