US EditionOfgem should use firms’ windfall profits to fund energy debt relief, say MPs
MPs highlight £4 billion excess profits by energy networks and urge Ofgem to fund debt relief for over 2 million UK customers struggling with energy debt.
- With the Energy Security and Net Zero committee urging Ofgem to use the £4.4 billion in network windfalls for debt relief, MPs called the situation `completely inexcusable`.
- Amid the affordability crisis, the ESNZ committee said windfalls arose from regulatory modelling and inflation, with household debt reaching a record £4.43 billion, highlighting the crisis's severity.
- Ofgem figures show household energy debt at 4.43 billion last month, with 1,133,683 electricity and 926,545 gas customers in arrears and average debt at 1,712 pounds at start of 2025.
- The committee urged an energy debt relief scheme and Ofgem says it is working at pace on plans, but Ofgem lacks tax powers and must recommend any windfall mechanism to the Department for Energy Security and Net Zero to seek Parliament approval.
- From the first quarter of next year, MPs want the energy price gap equalised, as Rachel Reeves considers measures for next month's Budget, and Ofgem develops plans for debt relief.
13 Articles
13 Articles
MPs call on Ofgem to tap network companies’ £4bn windfall for energy debt relief
The call for action on consumer energy debt forms part of a series of recommendations in the first part of the Energy Security and Net Zero select committee’s report into the Cost of Energy. In the second part of the inquiry, the committee will be looking at how costs like upgrading the grid and building new sources of energy generation are making up an increasing amount of the household bill. The Committee will be focusing on how bills might be…
MPs call for action on energy debt relief scheme
A call for action on consumer energy debt forms part of a series of recommendations in the first part of the Energy Security and Net Zero select committee’s report into the cost of energy. The report follows concern about consumers seeking support for energy billing, and the committee said that despite the rollout of smart meters, there were still issues around coverage, and Ofgem should have the back billing period to six months for those on a …
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