Adjustment Allowance News Today : Breaking News, Live Updates & Top Stories | Vimarsana

Households face £24 extra a year in energy bills The ‘Adjustment Allowance’ was introduced in winter 2020 to help suppliers deal with the economic fallout Customers with standard variable tariff could see their bills rise by £23.69 from 1st April. Ofgem has unveiled plans to adjust the default tariff price cap in response to growing bad debt costs as a result of the coronavirus pandemic. The ‘Adjustment Allowance’ was introduced in winter 2020 to help suppliers deal with the economic fallout – that means that household energy bills rise to compensate for the number of unpaid bills...

Energy suppliers will be able to charge customers an extra £23.69 a year to help them cover for coronavirus-related costs. Ofgem has agreed to allow providers to make the extra charge via its energy price cap, which is due to be reviewed this Friday, to help providers recover funds lost due to households in debt. Known as the Adjustment Allowance, from 1 April 2021, standard variable tariff customers can expect to see their bills rise to account for the impact of the pandemic on the costs of supplying domestic default tariff customers. The move has frustrated suppliers in the industry with O...