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Ofgem Propose £21 On Energy Bills To Cover Bad Debt.


Ofgem propose £21 on bills to cover bad debts due to Coronavirus.  

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  1. 1. Should Ofgems proposal to add £21 to cover bad debt be approved?

    • Yes
      2
    • No
      37


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Ofgem have proposed that UK households pay a £21 increase to energy bills from April to cover bad debt. They say the  extra charge could be the solution to compensating suppliers who have been left out of pocket due to the rising number of bill payers unable to meet their charges during the coronavirus pandemic. 

 

https://www.express.co.uk/finance/personalfinance/1362413/energy-price-warning-ofgem-increase-debt

 

 

 

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Their Balance Sheets include provision for Bad Debts, and they make profits over and above that.

 

I have to say that, in these exceptional times, the provision may be low.  That would impact on profits, maybe even wiping them out for a period.  However,  I can see no reason for all customers to be asked to pay for this temporary blip.  Businesses (especially large infastructure ones with reserves) continue, and can be expected to recover when the sector recovers, next year perhaps, after the vaccines ......

 

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11 hours ago, Thirsty Relic said:

Businesses (especially large infastructure ones with reserves) continue, and can be expected to recover when the sector recovers, next year perhaps, after the vaccines ......

 

Good post. Energy companies will have suffered very little, people still use energy, perhaps a little less. But they will just turn down the gas.

Is it just another news story, with little substance?

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Would like to know how much of the money in this country spent on energy goes abroad as four of the big six energy companies are foreign owned.

  • EDF Energy is French-state-owned.
  • NPower is owned by Innogy SE, a subsidiary of the German company RWE
  • Scottish Power is a subsidiary of Spanish utility company Iberdrola
  • E.ON is a German energy company

Only British Gas and SSE are British owned companies

Which energy suppliers are British owned? (uswitch.com)

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