The UK government is planning up to £2.5 billion in energy debt relief for about 2.4 million of the hardest-hit households, The Guardian reported, as suppliers are asked to identify customers at risk.
Polly Billington, the minister for energy consumers, met representatives of six major suppliers on Nov. 5 and urged them to offer support when a household shows signs it may struggle to pay. Energy UK, National Energy Action and consumer advice organizations, including Citizens Advice, also joined the meeting, according to the newspaper. The Guardian said assistance could include arranging repayments or connecting customers with debt advice.
The plan is intended to reduce energy debt for about 2.4 million households described as the hardest hit by the crisis. The government could provide up to £2.5 billion for that purpose, the report said. The government estimates the broader package would save all households an average of about £130 each over the next 10 years, the newspaper reported.
The burden extends beyond households already behind on bills. Suppliers’ unpaid-bill costs are passed on to other customers. The government’s energy debt strategy says the cost of managing energy debt averages about £67 per household a year across payment types. The Guardian reported that total household energy debt could reach £7 billion by the end of 2026, spreading the cost across the customer base.
The Guardian linked about two-fifths of unpaid bills to people moving home. Planned requirements would have landlords provide meter readings and dates when tenants move, the newspaper reported.
Citizens Advice warned that typical energy bills are expected to rise again in January, according to The Guardian.
