With the energy crisis squeezing the budgets of households and businesses, an increasing number of customers are struggling to meet their bills, despite the Energy Price Guarantee (EPG) and other forms of support provided by the Government. As millions more people fall into fuel poverty, energy suppliers’ bad debt – debt for which most or all of it is considered unrecoverable – is set to rise. Escalating bad debt will put pressure on already razor-thin regulated margins for suppliers, with the potential for it to even exceed overall implied profit allowances for the sector as a whole.
This report – authored in partnership by Cornwall Insight and Complete Strategy – assesses the issues faced by consumers and suppliers as a result of energy prices that are elevated well above historical levels and discusses the options available for struggling consumers and suppliers in both the domestic and non-domestic sectors to help manage and alleviate the growing threat of bad debt.
