Rising Energy Prices - Protecting customers in debt: A joint briefing from debt advice charities.
Citizens Advice, the Money Advice Trust and StepChange Debt Charity are warning that with a further substantial rise in the energy price cap coming in October, more households will be unable to afford their energy bills. Whilst the charities have welcomed the government’s package of financial support, they fear that given the likely scale of the October price cap rise more people are at risk of self-rationing their energy use or self-disconnecting. This in turn puts at risk many people’s physical and mental health during the cold winter months.
In a letter to the chair of Ofgem, the charities are urging the energy regulator to take action, by:
Publishing guidance to energy companies to ensure people who fall into arrears are treated fairly and are not asked to repay amounts they cannot afford.
Protecting customers in financial difficulty from potentially harmful debt collection practices.
Working with suppliers to keep prepay customers on supply this winter, including a temporary commitment to halt disconnections and forced installation of traditional prepayment meters for debt.