https://sputnikglobe.com/20231216/unpaid-energy-bills-reach-record-high-level-in-uk-amid-cost-of-living-squeeze-1115624974.html
Unpaid Energy Bills Reach Record-High Level in UK Amid Cost of Living Squeeze
Unpaid Energy Bills Reach Record-High Level in UK Amid Cost of Living Squeeze
Sputnik International
British households have not been paying their electricity and gas bills due to the cost of living crisis. The amount owed to energy suppliers has reached £3bn ($3.8 billion), revealed regulator Ofgem.
2023-12-16T14:22+0000
2023-12-16T14:22+0000
2023-12-16T14:22+0000
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cost of living crisis in uk
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A staggering number of British households are unable to pay their electricity and gas bills due to the cost of living crisis.The amount owed to energy suppliers has risen by £400 million since mid-October, reaching £3 billion ($3.8 billion), revealed a report released on Friday.These concerns have prompted the industry regulator Ofgem to propose raising its cap on household bills by £16 or £1.33 a month, for the next financial year from April 2024. That rise is aimed at helping intermediary billing companies offset higher debt costs they say could drive them to bankruptcy.“The record level of debt in the system means we must take action to make sure suppliers can recover their reasonable costs, so the market remains resilient, and suppliers are offering consumers support in managing their debts,” stated Tim Jarvis, Ofgem's director general for markets.When the West launched its sweeping sanctions campaign against Russia over Ukraine in 2022, the US, European Union, UK started seeking ways to limit Russia's income from gas and oil exports. They also boasted their determination to cut their dependence on cheap and reliable Russian fuel. However, embargoes on Russian energy exports led to a sharp rise in prices. Although the UK gets around half its domestic natural gas from fields in its maritime exclusive economic zone in the North Sea, regional gas boards, electricity generators and consumers must pay the going market rate for supplies.Record high energy prices last year were partly offset by government support payments averaging £2,500 ($3,191) per household last January. Since then, the price cap set by the government’s Energy Price Guarantee scheme has fallen to an average of £1,928 for January 2024. However, prices and wider cost of living pressures remain high, as Ofgem acknowledged in its report.
https://sputnikglobe.com/20230731/uk-opens-up-north-sea-oil-and-gas-to-counter-russia-ukraine-energy-crisis-1112273326.html
https://sputnikglobe.com/20231206/eu-overpaid-185-bln-for-gas-due-to-russia-sanctions--1115419103.html
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uk electricity and gas bills, british household energy debt, energy crisis, high energy costs, uk cost of living crisis, ofgem price cap, anti-russia sanctions, backfiring anti-russia sanctions,
uk electricity and gas bills, british household energy debt, energy crisis, high energy costs, uk cost of living crisis, ofgem price cap, anti-russia sanctions, backfiring anti-russia sanctions,
Unpaid Energy Bills Reach Record-High Level in UK Amid Cost of Living Squeeze
Anti-Russian sanctions imposed by the West over Ukraine had backfired spectacularly on European economies, resulting in accelerated inflation and prompting energy prices to soar. The UK, where gas is used to heat 85 percent of homes and to generate about 40 percent of electricity, fallout from these policies hit household finances hard.
A staggering number of British households are unable to pay their electricity and gas bills due to the
cost of living crisis.
The amount owed to energy suppliers has risen by £400 million since mid-October, reaching £3 billion ($3.8 billion), revealed a report released on Friday.
These concerns have prompted the industry regulator Ofgem to propose raising its cap on household bills by £16 or £1.33 a month, for the next financial year from April 2024. That rise is aimed at helping intermediary billing companies offset higher debt costs they say could drive them to bankruptcy.
“The record level of debt in the system means we must take action to make sure suppliers can recover their reasonable costs, so the market remains resilient, and suppliers are offering consumers support in managing their debts,” stated Tim Jarvis, Ofgem's director general for markets.
"The proposals set out today are not something we take lightly. This approach will ensure the costs are recovered fairly, without penalising a particular group of customers," Jarvis added.
When the West launched its
sweeping sanctions campaign against Russia over Ukraine in 2022, the US, European Union, UK started seeking ways to limit Russia's income from gas and oil exports. They also boasted their determination to
cut their dependence on cheap and reliable Russian fuel. However, embargoes on Russian energy exports led to a sharp rise in prices. Although the UK gets around half its domestic natural gas from fields in its maritime exclusive economic zone in the North Sea, regional gas boards, electricity generators and consumers must pay the going market rate for supplies.
Record high energy prices last year were partly offset by government support payments averaging £2,500 ($3,191) per household last January. Since then, the price cap set by the government’s Energy Price Guarantee scheme has fallen to an average of £1,928 for January 2024. However, prices and wider cost of living pressures remain high, as Ofgem acknowledged in its report.
6 December 2023, 06:44 GMT
