Changing to a quarterly price cap will help prevent suppliers going bust, but more support is needed for people struggling to pay their bills
Responding to news today that Ofgem will review the price cap every three months instead of every six months, Gillian Cooper, Head of Energy Policy at Citizens Advice, said:
“With the cost of energy only going in one direction right now, many will be worried by the idea of seeing even more frequent price changes.
“Something that’s added to all our bills is the cost of supplier failures. Changing to a quarterly price cap should limit the risk of any more suppliers going bust, which is a good thing. But our bills are already incredibly high and still rising.
“The government was right to bring in financial support for people, but it may not be enough to keep many families afloat. It must be ready to act again before winter draws in.
“Ofgem must make sure suppliers are helping customers who are struggling to pay. It should hold energy companies to account so people aren’t chased by debt collectors or pushed onto prepayment meters when they can’t keep up with bills.”
In its latest report on the energy market, Citizens Advice found the bill for supplier failures, including the administration costs for Bulb, stands at £4.6bn, potentially adding up to £164 to customer bills
Notes to editors
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