Those who pay energy bills could see their charges increase, as it has been revealed that consumers are paying for the collapse of some failed energy suppliers.
According to Citizens Advice, Brits have to pay an extra £255 million collectively due to providers not making their industry payments.
Chief executive of the charity Gillian Guy said: “Households are picking up an ever-increasing bill as more suppliers go to the wall. If other suppliers fail in the future that bill is likely to keep rising.”
While bill payers might not be aware of this, their energy costs have potentially been increasing to account for the failed payments from suppliers.
This analysis follows from Citizens Advice’s Picking Up The Pieces report in June. This estimated the outstanding cost to be £172 million. However, as another five energy suppliers have collapsed since then, this figure has increased.
In total, 16 suppliers have left the market since 2018, which has impacted more than one million energy customers.
Ms Guy noted that Ofgem is trying to help consumers by proposing measures to limit these costs. However, she stated, “more action is needed”.
She called for the party that wins the General Election this Thursday (December 12th) to force suppliers to meet their payment obligations regularly.
“This would stop suppliers from building up such high levels of debt,” Ms Guy stated, which customers then have to pay for.
Among the payments they tend to miss are their contributions to the Renewable Obligations (RO) scheme, which requires providers to prove they have sourced enough electricity from green alternatives. If they fail to do this, they have to pay into the fund.
However, Ofgem recently revealed Delta Gas and Power Ltd, Gnery Ltd, Robin Hood Energy, and Toto Energy Ltd failed to pay £14.7 million in outstanding payments to RO schemes by the August 31st deadline.
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