Europe

Six million UK households owe record amounts to energy providers

UK consumers’ energy debt is already at an all-time high, with 6 million households owing cash to their providers, even before bills surged in October and January, according to Wednesday’s survey.

Britain is already prepared for high energy prices to more than triple this year, pushing millions into poverty unless the government launches a multi-billion pound aid package to cushion the blow. The charity warns that it could fall.

The impending crisis has put pressure on the two candidates to become prime minister to start responding, raising questions about whether heavy industry and homes will face blackouts later this year.

According to comparison website Uswitch, almost a quarter of households owe their providers £206 ($249.10), a 10% increase in just four months. Energy accounts typically move into credit in the summer to cover the winter months. Uswitch said 8 million households now have no credit at all.

Uswitch’s Justina Miltienyte said, “This suggests that the cost of living crisis is already straining budgets dramatically, even during the summer, as families struggle with rising bills in all areas. doing.

The figure shows the scale of the challenges faced by Foreign Minister Liz Truss and former Finance Minister Rishi Sunak, one of whom has announced that, at the end of a weeks-long process that has thwarted a political response, He will be named prime minister on September 5.

Johnson’s outgoing government has pointed to a party convention that should not make any major policy changes during the elections for his successor, but Finance Minister Simon Clarke said the officials have not given enough money for the next prime minister to consider. He said he was creating a package of supportive measures. Read full text

The government said Cabinet Minister Kit Malthaus will hold a meeting of ministers and officials from several ministries on Wednesday to accelerate work to tackle winter pressures, including rising costs of living and energy prices. said he did.

 

Mounting pressure

The two clashed over how best to help, and Sunak said the government had a moral responsibility to provide more aid in the worst cases. .

She said Wednesday that she will do everything she can to help people get through the winter, but reiterated that she doesn’t intend to take the cash with taxes, only return it with energy assistance.

Truss also said it was important to work with energy companies to bring prices down. Read full text

Critics say the tax cuts will favor the richest over the poorest, with consumer rights advocate Martin Lewis describing the proposal as “outrageous.”

Separately, the government said it would host energy generation company bosses on Thursday while ministers consider how to respond to “outsized gains” seen in certain parts of the power sector.

In May, the government introduced a 25% windfall tax on the profits of oil and gas producers. Since then, wholesale gas prices have more than doubled.

There have been reports that due to worsening conditions, controlled blackouts may be introduced in the winter. Business units said they would get the electricity and gas the country needs.

The National Grid Electricity System Operator (ESO) said supplies could be tight during the winter months, but it has ways to deal with it.

However, its plans include power from Europe, raising questions about the robustness of that supply in recent months.

We will release a full winter outlook in early fall.

https://cyprus-mail.com/2022/08/10/six-million-british-households-owe-record-amount-to-energy-providers/ Six million UK households owe record amounts to energy providers

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