Energy debts to soar 50% with rising gas, electricity prices: warns UK
Category: #headlines  By Saipriya Iyer  Date: 2022-04-21
  • share
  • Twitter
  • Facebook
  • LinkedIn
Energy debts to soar 50% with rising gas, electricity prices: warns UK

The wholesale cost of gas in the UK has more than tripled over the last 12 months, pushing consumer costs beyond boundaries

Leading energy suppliers in Britain are warning the industry of a dramatic surge in the number of customers failing to pay their bills on time amidst volatile costs of gas and electricity adding to the household struggles.

According to Michael Lewis, Chief Executive Officer of the UK division of E.ON SE, energy bills associated debts of customers are likely to be 50% higher by the end of 2022.

On April 1st, 2022, UK’s cap on energy prices escalated to record high levels for 22 million people and is expected to only continue growing over the next phase of this year, potentially endangering 40% of Britain’s population with energy poverty.

Speaking on the potential threat, Keith Anderson, CEO of Scottish Power Ltd, shed light on the grave situation anticipated in October, urging the parliamentary panel to consider aggressive actions for initiating a significant shift to strengthen the industry against the massive size and scale of the problem.  

Over the last year, the wholesale prices of gas in the UK have more than tripled, adding to the growing challenges of burgeoning consumer costs.

While regulator of Ofgem’s price cap is capable of imposing a limit on the maximum high in bill prices, it has negatively affected 26 household suppliers that struggled to keep up with the optimum model of costs.

To address the volatile situation, lawmakers chaired a meeting asking the heads of Britain’s four biggest companies - Scottish Power, Centrica, E.ON, and EDF Energy – to brief about the pricing trends.

Suppliers in the region are growing anxious, necessitating government steps to aid customers pay their bills – which will ensure that the suppliers are paid for the energy services they supply.

Source Credit: https://www.bloombergquint.com/business/u-k-energy-bosses-warn-of-steep-increase-in-customers-debt

  • share
  • Twitter
  • Facebook
  • LinkedIn

About Author

Saipriya Iyer

Saipriya Iyer    

Saipriya Iyer currently works as a content developer for GroundAlerts. A computer engineer by profession, she ventured into the field of writing for the love of playing with words. Having had previous experience of 3 years under her belt, she has dabbled with website ...

Read More >>

More News By Saipriya Iyer

Japan PM Kishida orders measures to regulate rising energy & food prices
Japan PM Kishida orders measures to regulate rising energy & food prices
By Saipriya Iyer

Fumio Kishida, the Prime Minister of Japan, has recently announced that he would direct his administration to devise further steps to lessen the economic impact caused by rising energy and food costs. PM Kishida stated that he will give ...

Haitai Solar debuts on Beijing Stock Exchange with IPO launch
Haitai Solar debuts on Beijing Stock Exchange with IPO launch
By Saipriya Iyer

Haitai Solar, a high-tech enterprise focused on green energy, has recently announced that the firm has completed the process of its IPO (initial public offering) and commenced trading on the Beijing Stock Exchange. Apparently, this foraying of Hai...

Kao enters The Climate Pledge to achieve net-zero emission by 2040
Kao enters The Climate Pledge to achieve net-zero emission by 2040
By Saipriya Iyer

Tokyo-based consumer goods and cosmetics giant, Kao has recently become the newest organization to join The Climate Pledge, a commitment launched by online retailer Amazon and environmental advocacy group Global Optimism that encourages businesses to...