Ofgem considers basing energy bills on household income

Households could be charged different rates for their electricity depending on their income. 
 
Energy regulator Ofgem believes that fixed standing charges will make up a bigger proportion of what households are paying for energy in the next few years. 
 
Chief executive Jonathan Brearley warned that “if unchecked”, this could make existing inequalities even worse.  
 
As a result, Ofgem is looking at whether costs could be allocated “more progressively”, so households on lower incomes get a discount on standing charges and wealthier households pay more.

Review into bills to be carried out

A review into how households are charged for electricity will begin this summer. 
 
Mr Brearley said this will mean exploring ways the price customers pay for fixed costs can be tied to income. 
 
“We want to at least ask the question,” he commented. 
 
However, Mr Brearley pointed out that any decision is unlikely to be made soon and stressed that doing “something related to income” would be a logistical challenge. 
 
According to the latest Ofgem data, people in the UK are now a record £3.8bn behind with their energy bills.

What to do if you’re struggling with energy bills 

If you’re finding it hard to keep up with your bills, you should speak to your supplier, as they might be able to offer help such as grants. 
 
It’s also well worth checking to see what other support you might be eligible for. 
 
Use our benefits calculator or get in touch to find out what you could claim.