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UK's record unpaid energy bills prompt regulator to request ideas

Britain's energy regulator Ofgem on Monday released a require input to assist secure customers amid high energy expenses and find ways to address a. record 3.1 billion pound ($ 3.98 billion) stack of unpaid costs.

Although energy prices have actually fallen in recent months,. affordability for numerous homes remains an issue, while Ofgem. last month said customer debts, or unsettled bills, have risen.

Lots of people have actually been having a hard time to pay their energy costs. amidst unprecedented levels of financial obligation, and the legacy of this risks. becoming an enduring problem, said Tim Jarvis, Ofgem's Director. General for Markets.

Ofgem currently has a cost cap in place, but this soared to. 3,549 pounds a year for an average family in October 2022. after Russia's intrusion of Ukraine resulted in tape-record wholesale. energy costs, and peaked at over 4,000 pounds in January 2023.

To avoid crippling costs for families, the federal government. subsidised energy costs to limit them at 2,500 pounds a year for. typical use up until end June 2023 when the Ofgem cap fell back. below this level.

Ofgem has actually previously said Britain must think about launching. a social tariff for household energy which would see those the majority of. susceptible and least able to pay charged a lower price for their. power, however said this would be a choice for the federal government.

The regulator is seeking input by a deadline of May 13 from. customers, energy providers, consumer groups, charities, and. financial obligation management business in particular.

(source: Reuters)