Energy firm profits could fund debt relief scheme, say MPs

Ofgem has been urged to ease financial pressures on energy customers by tapping into network companies’ profits.

According to the Energy Security and Net Zero Committee, a group of MPs in parliament, energy customers owe more than £4bn in debt and arrears.

But at the same time, network companies have made more than £4 billion in excess profits.

As a result, the committee believes this money should be used to create an energy debt relief scheme that would help hard-pressed households.

“These profits have come simply from outperforming price controls, even as millions of families ration energy or go without heat,” said Bill Esterson, chair of the committee.

Call for action on standing charges 

The Energy Security and Net Zero Committee has also called on Ofgem to take steps to reduce the burden of standing charges, such as: 

• exempting customers from gas standing charges if they convert to electric heating
• making sure standing charges don’t make up more than 50% of money put onto a pre-payment meter

“Non-commodity costs like upgrading the grid and building new sources of energy generation are making up an increasing amount of the household bill,” Mr Esterson commented.

The committee added that standing charges are a "regressive tax on energy access”. 

What can I do if I’m struggling with my bills?

If you’re finding it hard to keep up with your bills:

Contact your supplier

Your energy supplier might be able to offer:

• grants
• payment plans
• advice on managing your account
• emergency credit if you’re on a prepayment meter

It could also be worth joining the Priority Services Register for extra support.

Apply for the household support fund 

You may be able to get extra help with energy costs and food through your local council via the household support fund (HSF).

Find out what other benefits you could claim

You might already be eligible for support such as the warm home discount or winter fuel payments.

But it’s still worth seeing what other help is available, such as:

• housing benefit
• council tax discount
• free TV licence if over 75 

Try our free benefits calculator to find out if you’re getting all the support you’re entitled to receive. 

Or give us a call and we’ll have a look for you.

Try to save energy

Small steps such as turning down your thermostat by one degree, not overfilling the kettle and bleeding your radiators could help you cut your energy usage - and in turn, bring your bills down.

We’ve put together a list of 50 smart energy-saving tips to help you get started.