Home Business News Ofgem warned ‘millions of people’ will not pay their bills which ‘demonstrates the anger’ over a ‘broken energy system’

Ofgem warned ‘millions of people’ will not pay their bills which ‘demonstrates the anger’ over a ‘broken energy system’

by LLB Finance Reporter
18th Aug 22 3:50 pm

Ofgem has been warned that “millions of people” will boycott paying their energy bills this year amid a “broken energy system” unless the the price cap is not raised “immediately.”

From October Ofgem has said that the energy price cap will rise every three months which some say will make it more difficult for struggling families.

Brits have been warned that from 1 October their will be a 82% rise which will see the average annual bill hitting an eye watering £3,582.

On Twitter The New Moderates issued a new warning to Ofgem over the fast growing campaign where millions of people will boycott their energy bills.

They said, “Ofgem should immediately smash the energy price rise and force the energy companies to take on the cost.

“If they can’t do that, then the energy companies must be nationalised to stop this national emergency getting even worse.”

Don’t Pay UK, who launched in June this year, said the campaign has now reached “millions of people” and the support received so far “demonstrates the anger and frustration at a broken energy system that needs to be drastically transformed for the interests of people.”

They said, “In just a few weeks, over 100,000 of us from across the country have come together to say we will refuse to be pushed into fuel poverty and we no longer want to pay for the profits of the energy companies.

“We are building the biggest mass non-payment campaign since the Poll Tax and we are showing the powers that be that our collective power will force an end to this crisis.”

Brean Horne, a personal finance expert at comparison site NerdWallet warned, “With energy prices expected to soar to £3,359 a year for the average household in the next six months, many will risk falling into financial difficulty which may lead to problem debt if they don’t have savings to fall back on.

“While the government plans to offer a £400 energy bill discount this winter, it doesn’t go nearly far enough to cover the staggering increases that many households face.

“Although some consumers may be tempted, to follow The Don’t Pay UK movement, there may be dire long-term consequences.

“Suppliers usually charge a customers are likely to face a non-payment fee. Energy customers face additional fees if they avoid paying their monthly direct debit.

“While direct debit tends to be the cheapest and most convenient way to pay for gas and electricity, your supplier is likely to send you bills at a much higher rate if you cancel, which will be added to the arrears.

“If you have arrears and do not arrange to start paying back what is owed, your supplier can begin the process of moving you over to a prepayment meter.

“Missed payments and defaults on an energy bill can also cause harm to your credit score, in a similar way to missing a payment for a loan or credit card.

“Having a poor credit score can make securing finance from a lender much more difficult because it indicates you may struggle to pay back what you borrow based on your payment history.

“Those who are already struggling to keep up with their energy payments – or believe they will – can seek help from Citizens Advice for impartial advice and guidance. Homeowners may also be able to take advantage of certain benefits, grants and help offered by the government and energy suppliers.”

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