Energy regulator Ofgem faces criticism from campaigners over its decision to allow suppliers to pass bad debt costs to consumers.
Proposed £16 Charge to Price Cap
Ofgem suggests adding a one-time charge of £16 to the price cap for households starting in April 2023 to address the rising debt issue.
Record £2.9 Billion Owed to Suppliers
Suppliers are reportedly owed a record £2.9 billion by customers who have fallen behind on their energy payments.
Ofgem Defends Decision
Tim Jarvis, director general for markets at Ofgem, defends the decision, citing the need to ensure suppliers can cover their reasonable costs amid rising energy debt.
Consumer Advocates Denounce the Move
Simon Francis, coordinator of the End Fuel Poverty Coalition, criticizes the decision, calling it an “outrageous tax” on energy consumers, especially when suppliers have reported significant profits.
Ongoing Debate on Energy Affordability
The move raises questions about the affordability of energy for consumers as living costs continue to surge, prompting ongoing debates on fair practices within the energy market.
Source: mirror.co.uk
