Ofgem is reportedly considering a proposal that would enable energy suppliers to levy an annual charge of £30 on households to recover the expected surge in debt as a result of the restrictions on prepayment meter installations.

According to The Times, energy suppliers may add the annual £30 charge to bills from October.

An Ofgem spokesperson told ELN: “We’re tightening up the rules on when and where prepayment meters can be installed, which combined with the current pause on installations may result in higher debt levels in energy suppliers.

“These improved protections are needed, but we need to balance these with the potential impact on levels of bad debt.

“We are seeking evidence on this now, and will update in the coming months on any changes to the price cap that might be needed.”