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FX.co ★ Energy debt in UK hits £1.3 billion

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Forex Humor:::2022-08-22T13:24:08

Energy debt in UK hits £1.3 billion

Energy debt in the United Kingdom has hit an all-time high of £1.3 billion. Bills started to rise sharply amid a deficit in the energy market, leaving UK households in debt ahead of the winter season. In July, energy debt more than doubled from September, Uswitch, a UK-based price comparison service, reported. Six million homes across the country now owe an average of £206 to their energy providers. Notably, with the introduction of the tariff cap to domestic customers for the supply of gas and electricity in 2018, energy debt in the United Kingdom started to decrease. This year, however, it soared by 10% between April and July.

"Energy debt has hit an all-time high with the worst possible timing, turning this winter's energy price hike into a deeply precarious situation for many households," said Justina Miltienyte, the head of policy at Uswitch.

Industry and households could face planned power outages in the United Kingdom during the winter. The government is bracing for several days in January when cold weather may combine with gas shortages, leading to organized blackouts for industry and households.

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