MSE News: Energy supplier failures to add an extra £94 to household bills next year

MSE_Petar

The recent collapse of many UK energy companies will add an extra £94 to household bills from next year as the firms left in the market look to pass on the costs of taking on stranded customers, according to a damning new report from Citizens Advice that is also highly critical of the regulator.

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'Energy supplier failures will add an extra £94 to household bills next year, warns Citizens Advice'

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Norman_Castle

"£94 to household bills". Is this a blanket cost to every household or an average based on average use? Citizens Advice need to give clearer advice or MSE need to provide a source for this vague information.

QrizB

Norman_Castle said:

"£94 to household bills". Is this a blanket cost to every household or an average based on average use? Citizens Advice need to give clearer advice or MSE need to provide a source for this vague information.

There's been no indication yet as to whether it will be part of the standing charge or rolled into the unit cost. It's also spread over two years, so roughly £1/week.

inspectorperez

Norman_Castle said:

"£94 to household bills". Is this a blanket cost to every household or an average based on average use? Citizens Advice need to give clearer advice or MSE need to provide a source for this vague information.

"Notes to editors

1. £2.6bn figure based on new analysis by BFY Group for Citizens Advice. When an energy supplier fails, Ofgem normally appoints a new supplier to take on its customers. This will incur costs - like paying for energy for the new customers and protecting their credit balances - which the new supplier can apply to use an industry levy to recover. The costs of the levy are  ‘mutualised’ (paid for by all other customers through an extra charge on our bills).

2. Estimates of costs per household are based on dividing the £2.6bn by the number of households.  This assumes that Ofgem proceeds with itsminded-to positionto amend industry rules so that last resort supply costs are no longer collected from non-domestic gas users from April 2022."

Footnote to CAB Report 9 December 2021

BFY Group - https://www.bfygroup.co.uk/aboutus