Brits in more energy debt than when bills peaked in 2022 - with green levies blamed
Energy bosses blamed Net Zero policies for keeping bills higher for consumers
Britons are in more energy debt than when bills peaked in 2022 - as green levies are blamed for inflating costs, LBC can reveal.
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Citizens Advice says the average household calling the charity for support is £1,700 behind on their gas and electricity bill, a £700 increase from three years ago.
The energy price cap stood at more than £2,300 in 2022 following Russia's invasion of Ukraine which triggered the energy crisis.
Ofgem is expected to lower the price cap from January by £22 in an update later on Friday, according to latest predictions from Cornwall Insights.
But speaking to a committee of MPs this week energy bosses blamed Net Zero policies for keeping bills higher for consumers.
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It is claimed green levies could add £300 to the typical bill by 2030.
Senior executives from Octopus Energy, Centrica, E.On, EDF and Ovo have called on ministers to look again at the levies which are used to fund Net Zero projects.
According to Nesta, green levies raised £5.9 billion from household energy bills in 2024. It could explain why Citizens Advice has registered sustained demand for help from struggling families.
It has already handed out 63,000 fuel vouchers this year before the winter cold snap even settled in.
The charity reckons 10 per cent of Britons, seven million people, are now living in households in debt to their supplier.
Speaking to Nick Ferrari on LBC last week, Energy Secretary Ed Miliband repeated a promise to get bills down with the transition to renewable energy. He said: “The reason we made that pledge was because of the affordability crisis we know many families are going through.
"We're very focused on this. I know the chancellor is focused on cost of living, affordability. It takes time to put up the solar power, the wind power, all of that, to get off fossil fuels and get bills down.”
The government has already announced an extra 2.7 million families will get £150 off their energy bills this winter, thanks to the Warm Homes Discount.
The chancellor is also reportedly considering scrapping VAT on energy bills in next week’s Autumn Budget.