UK Energy Supplier Ovo Calls for Ten-Point Plan to Lower Bills

The UK’s third-largest household energy supplier set out a plan that it says would enable the government to help to homes facing soaring bills.

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(Bloomberg) — The UK’s third-largest household energy supplier set out a plan that it says would enable the government to help to homes facing soaring bills.

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Ovo Energy Ltd. founder Stephen Fitzpatrick set out ten aims, ranging from bringing forward subsidies of bills, to launching a national home-insulation drive. 

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Household bills are set to nearly triple from October compared with last winter after Ofgem announced a hike in the price cap, which limits the unit costs suppliers can charge customers. Businesses aren’t protected by that cap and many face shutting down as a result of surging prices.

Suppliers are increasingly worried that customers could refuse to pay their bills this winter or simply won’t be able to. Mounting bad debt could in turn push the price cap even higher as well as put more suppliers at risk of collapse.

Ovo’s 10-point plan

• Bring forward the £400 ($464) energy bill subsidy
• Set up a fuel poverty task-force
• Increase funding for debt advisory charities
• Make prepayment meters the cheapest way to pay
• Smooth bill hikes with a tariff-deficit fund, focusing on poorest households
• Abolish the standing charge in bills
• A national home insulation effort
• Expand Future System Operator’s remit to procure energy for the country
• Reinstate a single department of energy and climate change
• Introduce a carbon tax