THE boss of the UK’s largest energy firm fears the “worst is still to come” as households continue to struggle to pay bills.
British Gas boss Chris O’Shea made the comments as Ofgem reveals consumer energy debt is at its highest level ever.
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Centrica, owner of British Gas, is the UK’s biggest household energy supplier with 7.5million customers.
The company chief executive said: “My worry is that the worst is still to come, we are seeing direct debits being cancelled, we are seeing people struggling.”
Ofgem, the energy regulator reduced the price cap earlier this month to £1,834 a year for a typical household.
However, with energy bills forecast to rise in the New Year, experts are predicting the price cap will rise again in January to around £2,000.
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He added that the increase would add to consumers’ problems, with many people trying to juggle the costs of higher rents and mortgages.
This month Ofgem reported that consumer energy debt had reached £2.6billion – its highest level ever, due to a combination of the rise in energy prices and increasing cost of living pressures.
The regulator added that it is considering whether it should add a one-off adjustment to the price to reduce the risk of energy firms going bust.
However, it believes that doing this could result in a rise of £17 a year on average for household bills.
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Speaking to Bloomberg News, Mr O’Shea said: “The regulator has a difficult situation, but they’ve created this market.
“If everybody is losing money in the market, the market will collapse.”
How can you get help with your energy bills?
If you are struggling to pay your bills there is help on offer this winter and into 2024.
The government is in the process of distributing £900 of tax-free cash to millions of households.
The cost of living payment was split out into three installments and the second, worth £300 is due to be paid into bank accounts soon.
The payment is to ease the pressure off those households receiving benefits and struggling to pay their bills.
It is paid straight into bank accounts and the second payment is due between October 31 and November 19.
Thousands of pensioners eligible for the winter fuel payment will receive up to £300 top-up from the government this year.
The payment is being made to every household with someone born before September 25, 1957.
On top of the regular payment, the Government is topping it up with a £150 or £300 pensioner cost of living payment, meaning you could receive up to £600 in total.
In most cases, you won’t have to apply and the payment will be made automatically from November.
The Household Support Fund is worth £842million and has been shared between councils in England.
What you can get varies depending on where you live, in most cases, support is offered to those on low incomes or benefits.
Some households have received vouchers to help pay for energy bills while other local authorities have transferred money directly into residents’ bank accounts.
The latest batch of funding has to be allocated by councils by March 31, 2024.
Cold weather payments are made to hard-up households to help cover the cost of higher energy bills during cold snaps.
Eligible households receive £25 for every seven-day period where temperatures are below zero degrees.
The money is paid by the Department for Work and Pensions.
The scheme runs between November 1 and March 31 but you don’t have to apply and will receive the payments automatically if you are eligible.
Millions of households in England, Wales and Scotland can also get £150 deducted off their energy bills through the warm home discount.
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This winter the money will be taken off your bill between October 16 and March 2024.
To find out if you meet the criteria for the warm home discount and to see what other help you could benefit from you can find out more in our full list of energy grants and freebies round up.
