Ofgem has today announced a series of measures aimed at addressing the mounting energy debt faced by consumers and the financial strain caused by soaring energy bills.
With energy debt reaching a staggering £3.1 billion, the energy regulator seeks to alleviate the burden on consumers and enhance fairness within the energy market.
One measure unveiled by Ofgem involves the equalisation of standing charges across payment methods, effectively eliminating the previously incurred ‘PPM premium‘ for prepayment customers.
This move aims to ensure that customers are not unfairly burdened based on their chosen payment method.
Additionally, Ofgem has announced a temporary adjustment to the price cap to assist suppliers in managing increased levels of bad debt.
This measure includes a temporary additional payment of £28 per year (£2.33 per month) for customers paying by direct debit or standard credit, aiming to provide suppliers with sufficient funds to support customers facing financial difficulties.
Furthermore, Ofgem has extended the ban on acquisition-only tariffs (BAT) for up to another 12 months.
This measure, initially introduced in April 2022, aims to enhance market stability by eliminating short term discounted tariffs, which often posed risks to consumers and contributed to supplier failures during the energy crisis.
In addition to these measures, Ofgem has confirmed the termination of the Market Stabilisation Charge from 1st April.
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