MSE News: Energy supplier failures to add an extra £94 to household bills next year
'Energy supplier failures will add an extra £94 to household bills next year, warns Citizens Advice'
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"£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.
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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.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.Ofgem cap table, Ofgem cap explainer. Economy 7 cap explainer. Gas vs E7 vs peak elec heating costs.1 -
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
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£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).
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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 2021BFY Group - https://www.bfygroup.co.uk/aboutus
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