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

MSE_Petar
MSE_Petar Posts: 352 MSE Staff
Part of the Furniture 10 Posts Photogenic Name Dropper
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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Comments

  • Norman_Castle
    Norman_Castle Posts: 11,871 Forumite
    Part of the Furniture 10,000 Posts Photogenic Name Dropper
    "£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
    QrizB Posts: 13,830 Forumite
    10,000 Posts Third Anniversary Photogenic Name Dropper
    "£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.
    N. Hampshire, he/him. Octopus Intelligent Go elec & Tracker gas / Shell (now TT) BB / Lebara mobi. Ripple Kirk Hill member.
    2.72kWp PV facing SSW installed Jan 2012. 11 x 247w panels, 3.6kw inverter. 32MWh generated, long-term average 2.6 Os.
    Taking a break, hope to be back eventually.
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  • inspectorperez
    inspectorperez Posts: 838 Forumite
    Fourth Anniversary 500 Posts Name Dropper
    edited 12 December 2021 at 12:18PM
    "£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


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