Business & Finance
Energy suppliers urge UK government to expand household bill support ahead of winter price cap rise
Energy UK calls for a targeted £1.9 billion social discount scheme as wholesale costs push expected price caps to a three-year high.
The short version
- Energy industry trade body Energy UK has urged the UK government to introduce an expanded, data-targeted social discount scheme to help vulnerable households with energy bills.
- Regulator Ofgem is anticipated to announce an estimated 4% increase in the energy price cap covering 33 million British households.
- The proposal comes amid record customer energy debt of £4.7 billion, driven by wholesale price increases following European heatwaves and the Iran war.
- The UK government pointed to existing measures including the Warm Home Discount and an electricity VAT cut, while Ofgem's official price cap announcement is expected Wednesday.
Key facts
- Energy UK proposed a £1.9 billion targeted social discount scheme that could offer up to £450 in assistance to vulnerable households by integrating income, health, and energy consumption data.[BBC News]
- Energy consultancy Cornwall Insight forecasts that Ofgem's upcoming energy price cap will rise by 4% to reach a three-year high starting in October.[BBC News]
- Ofgem data shows that UK energy customers who fell behind on bills owed suppliers a record £4.7 billion by the end of last winter.[BBC News]
- The energy price cap establishes maximum unit rates for standard variable tariffs across roughly 33 million households in England, Wales, and Scotland.[BBC News]
- Cornwall Insight noted that higher wholesale energy costs have been driven by summer heatwaves across Europe and conflict following the outbreak of the Iran war in February.[BBC News]
What remains uncertain
Sources
- Struggling households need more help with bills, energy industry saysBBC News - Business