Uswitch comments on plans for one-off £16 household charge to help energy firms recover bad debts
Uswitch has issued the below comment regarding Ofgem's plans for a £16 charge for households to help energy companies recover £3bn in bad debts.
Richard Neudegg, director of regulation at Uswitch.com, comments: “It is always frustrating when consumers face having more costs added to their already high bills.
“If suppliers can’t cover bad debts in their revenues, it can lead them to more aggressively chase those in vulnerable situations.
“In the worst case scenario, bad debts left unchecked could even threaten the provider’s overall stability – which will leave customers picking up the bill in the long term.
“Ultimately, this highlights another problem with the whole price cap system. As long as we have a price cap set by Ofgem, it will fall to the regulator to be making these sorts of judgements.
“The price cap is not fit for purpose, and market reforms are needed to introduce competition back into the market and help consumers access cheaper deals again.”
About Uswitch
Uswitch is one of the UK’s top comparison websites for home services switching, including energy, broadband and mobiles.
More people go to Uswitch to switch their energy, broadband and mobile than any other site, and we have saved consumers over £2.7 billion off their bills since we launched in September 2000.
Free mobile app Utrack also helps households manage their home energy usage and make potential savings.
Uswitch is part of RVU, a group of online brands with a mission to empower consumers to make more confident home services, insurance and financial decisions.