Ofgem plans £16 household charge to help energy firms recover £3bn in bad debts

Extra payment would be levied at £1.33 a month on bills paid between April next year and March 2025

The energy watchdog has set out plans that would result in households paying an extra £16 on top of their energy bills to help suppliers recover almost £3bn in bad debts from customers struggling to pay bills.

Ofgem said the one-off extra charge, which would be levied at £1.33 a month on bills paid between April next year and March 2025, was to “protect the market and consumers” after figures showed energy debt had hit a record £3bn.