The value of unpaid energy bills reached an unprecedented figure of 3.1 billion pounds (Shutterstock)
Most household energy bills in Britain are expected to fall from next April after the energy regulator Ofgem reduced the price ceiling in the local market by 12.3% to its lowest level in more than two years.
This reduction, resulting from falling wholesale energy prices, will provide a breathing space for families struggling amid the cost of living crisis, and will help control inflation.
The new maximum annual average electricity and gas consumption prices - which amount to 1,690 pounds ($2,139.37) - is reduced by 238 pounds from the previous maximum of 1,928 pounds.
The authority said that this would lead to energy prices reaching the lowest level since the Russian-Ukrainian war.
“In the longer term we need to consider additional measures for those who cannot pay their energy bills even as prices fall,” said Energy Regulatory Authority chief executive Jonathan Brearley.
The value of unpaid bills reached an unprecedented 3.1 billion pounds.
About 29 million customers are subject to the standard and maximum electricity tariffs that came into effect in 2019 with the aim of protecting consumers.
The Authority updates the maximum every 3 months to reflect changes in some costs, including network fees, wholesale prices, and environmental and social costs.
Source: Reuters