British Gas profits highlight Britain’s broken energy system
“At a time when household energy debt is spiralling to record levels and energy bills remain double what they were just a few years ago, the profits posted will be greeted with disbelief by those struggling through the crisis.
“There will of course be questions about how these profits were made, but the reality is that energy firms are operating on a playing field set by the government.
“People will rightly ask what this government is doing to curb these profits and fix our broken energy system.
“The only way to lower energy bills permanently is to insulate homes and switch to cheaper renewable energy, which we are lucky enough to have in abundance. This government needs to stop singing to the tune of the energy giants and start actually delivering a functioning energy system that works for everyone.
“And in the short-term, households will need more support to stay warm this winter. The number one priority for energy firms and the Government must be to support household and business customers who have become the victims of sky high energy prices – preferably as part of a wide scale ‘help to repay’ energy debt programme.”
Some key facts:
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5.5m UK population in Energy Debt (Money Advice Trust): https://www.
endfuelpoverty.org.uk/ charities-help-to-repay- energy-bills-debt-soars/ -
Over one in ten (12%) vulnerable households, such as the elderly and disabled, are now sitting on an energy bill debt of at least £250 each. A fifth (18%) of prepayment meter customers owe upwards of £250 each, with many owing more than £500. (Warm This Winter): https://www.
endfuelpoverty.org.uk/rising- energy-debt-creates-mental- health-crisis-for-households/ -
It is so bad that 1.2m households disconnected in the first 3 months of 2023 (Ofgem): https://www.
endfuelpoverty.org.uk/surge- in-energy-disconnections-and- debt/ -
Estimates for total energy debt vary, but the Help to Repay proposals could cost around £1.5bn (Money Advice Trust pdf)
