Energy suppliers urge government action as household energy debt set to hit £7bn
Energy UK wants targeted support, levy changes and a debt relief scheme as record household energy debt is forecast to reach £7bn by the end of the year.
The Full Story
A plain summary built from the channels that reported this story.
The trade body for UK energy suppliers has called on the government to act now to help households struggling with bills this winter. Energy UK, which represents firms that would ultimately benefit from any government intervention, says millions of customers already have record levels of energy debt. Its new report says debt stands at £6 billion and is likely to reach £7 billion by the end of the year, with another £1 billion possible in the first half of next year if ministers do not intervene.
The warning comes as 20 million households on variable tariffs are affected by Ofgem's price cap. Typical household energy bills rose by £60 at the start of October. Forecasters think they could rise by a further £350 when the cap is next set in January, which would take a typical annual bill to £2,100. Energy UK says the government should act quickly and learn the lessons of the past. £36 billion was spent by the state to support households through the winter of 2022 after the Russian invasion of Ukraine.
In its report, Energy UK calls for:
- targeted support above the £150 Warm Home discount;
- a shift of some levies from electricity bills to general taxation;
- a debt relief scheme for the households most severely affected.
It argues the cost of debt affects everyone, not just those behind on payments. On a typical bill, around £67 covers the overall debt, a cost that is spread across the whole customer base.
Fuel poverty charities say more must be done to help people cope with energy shocks. One charity worker said many clients will not be able to pay off their debts, and that writing off debt could be used to engage them and move them onto cheaper energy tariffs. The government says it reduced energy bills by £150 last year and has cut VAT on bills until next April. It says that VAT cut will reduce the price cap by around £45 a year. But with the biggest rise in bills for four years forecast, suppliers and charities want action before winter.
On screen
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Key Claims
Claims reported during this story's coverage, grouped by how many channels reported each one. Select a dot to see the source excerpt.
| Claim |  |
|---|---|
| Only on one channel | |
| Energy UK called for immediate government action to help people with energy bills this winter. | |
| Energy UK said household energy debt stands at £6 billion and could reach £7 billion by the end of the year without government intervention. | |
| Typical household energy bills rose by £60 in October, with forecasts of a further £350 increase when the price cap is next set in January. | |
Channel Perspectives
What each channel focused on, with key quotes.
BBC ONE West led on Energy UK's call for government action and the record debt figures, then set out the price cap pressure and the supplier body's policy asks. It gave space to the government's VAT cut and to fuel poverty charities, keeping a neutral broadcast tone. It also noted Energy UK represents firms that would benefit from intervention, a caveat that adds context to the lobbying push.
- “Energy suppliers are calling on the Government to take action now to help people who will be struggling with their energy bills this winter.”
- “Energy debt is at £6 billion right now. We think it will reach £7 billion by the end of the year and probably another billion in the first half of next year if Government doesn't intervene.”
- “On a typical bill, around £67 is covering the overall debt.”
Broadcast Timeline
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