The End Fuel Poverty Coalition published a stock take of Britain's energy system in September 2023, covering bills, debt, support schemes, supplier profits and winter deaths. The coalition said the summary was intended to let readers "catch up on the state of Britain's broken energy system" after a summer of reports, consultations and announcements1.
On bills, the coalition said every unit of energy a customer uses still costs double what it did in winter 2020/21, and that daily standing charges have doubled in the case of electricity1. It cited Resolution Foundation estimates that 7m households will pay more this winter than last because of other changes to the price cap1. Regional variation means aspects of the bill can be 57% more in some areas than others1. Ofgem confirmed suppliers' profits will rise by £2 per customer per year from October1.
On debt, Ofgem figures showed almost 1.2m customers disconnected from their energy supply in the first three months of 20231. Average household energy debt for homes not on a payment plan is £1,214 on electricity and £965 on gas1. Data obtained under freedom of information requests by 38 Degrees showed prepayment meter customers are £1bn in debt on their meters1. Citizens Advice found 7.8m people borrowed money to cover energy bills in the first six months of 2023, and 1.2m children live in households that have gone without heating, hot water and electricity1.
On support, Age UK figures show the Energy Bills Support Scheme Alternative Fund, designed to give £400 to households supplied indirectly via a landlord, site owner or other intermediary, failed to reach almost 4 in 5 of those eligible1. The main scheme recorded 20m missed payments and 50.6m unclaimed prepayment vouchers, more than £70m in support that did not get through1.
| Item | Figure |
|---|---|
| Disconnections, first quarter 2023 | almost 1.2m customers1 |
| Average electricity debt, no payment plan | £1,2141 |
| Average gas debt, no payment plan | £9651 |
| Prepayment meter debt | £1bn1 |
| Borrowed money for energy bills, first half 2023 | 7.8m people1 |
| Excess winter deaths, 2022/23 | 4,706, up from 3,1861 |
On health, the coalition recorded 4,706 excess winter deaths caused by cold damp homes in winter 2022/23, up from 3,186 in winter 2021/22, a 48% increase, for England, Scotland and Wales only1. It said the Met Office confirmed this winter is likely to be an El Nino winter, colder and drier than usual, and that its records suggest excess winter deaths rise significantly when the average winter temperature drops below 3.6C1. The MND Association reported some families with the highest levels of care spend up to £900 a month on electricity alone and are reducing use of vital equipment1.
"After a hectic summer, full of research reports, consultations and announcements, catch up on the state of Britain's broken energy system with the summary below"
Why it matters for households
The stock take sets out how the cost of a unit of energy and the fixed daily charge interact. Standing charges are paid regardless of use, so the doubling of the electricity standing charge raises the floor cost of an electrically heated home even when consumption falls1. The coalition's finding that standard credit customers pay more than direct debit customers means the payment method itself changes the bill1.
For homes not on mains gas, or supplied through an intermediary such as a park home site owner or landlord, the Alternative Fund figures are directly relevant: almost 4 in 5 eligible households did not receive the £4001. Households in the private rented sector and on park homes and static caravans are the groups the scheme was designed to reach1. For households with medical equipment or high care needs, the reported £900 monthly electricity costs and reduced equipment use show how vulnerable and medically dependent households carry costs that general bill averages do not capture1.
The debt figures matter for independence from a supplier's credit terms: prepayment customers whose top-ups are deducted to repay debt are more likely to self-disconnect1. The coalition also noted that a unit of gas is traded 13 times before reaching the end user, and electricity three times, and that Morgan Stanley was fined £4.5m by Ofgem over energy trading record keeping1.
What happens next
Ofgem has yet to publish a final decision on the prepayment meter consultation and confirm when forced transfers to prepayment meters will restart1. The coalition said more than 20,000 members of the public responded to that consultation1. The Windfall Tax is set to expire in March 2028, though the coalition said industry moves could see a "price floor trigger" ending it prematurely1. The coalition warned that Citizens Advice expects borrowing and going without heating to rise this winter if the Government does not step in1.
Sources1 cited
- September 2023 Fuel Poverty Stock Take, endfuelpoverty.org.uk