Ofgem Eyes £17 Annual Bill Hike to Dodge Energy Crisis
The UK’s energy watchdog, Ofgem, is considering a one-off energy bill increase of up to £17 a year. The move aims to shield consumers and stabilise the market amid soaring energy debts, which hit a staggering £2.6 billion this summer. Rising wholesale prices and the cost-of-living squeeze are to blame.
Any hike would kick in from April next year, Ofgem warned. Tim Jarvis, Director General for Markets at Ofgem, acknowledged the pinch on household budgets but stressed tackling spiralling debt and stopping supplier collapses is vital.
Why Could You Pay More? Past Supplier Failures Spell Trouble
Back in 2021, 30 energy suppliers folded after price hikes. That cost every customer an extra £82 to keep the lights on. Ofgem fears not acting now could push bills even higher if more companies go bust, also risking poorer service.
The regulator plans to open talks with industry players, consumer groups, and the public to sort out how any rise would be shared.
KPMG Slapped with £21m Fine Over Carillion Audit Fiasco
In a separate bombshell, auditing giant KPMG has been hit with a record £21 million fine by the Financial Reporting Council (FRC). The penalty comes after “serious” failings in KPMG’s accounts for Carillion, the collapsed construction titan whose 2018 downfall wiped out thousands of jobs and stalled 450 projects.
Jon Holt, KPMG UK CEO, said: “We deeply regret our failings on Carillion. Our audit work fell short over many years. Some ex-partners and staff didn’t meet their responsibilities.”
UK Economy Stutters But Shows Signs of Life
Official data from the Office for National Statistics (ONS) revealed the UK economy nudged up by 0.2% in August after a tougher July. The rebound owed much to the services sector bouncing back post-strike.
Fields like education, computer programming, and engineering helped lift growth. But arts, entertainment, and sports sectors saw dips.
The ONS also revised July’s GDP contraction to 0.6% — worse than the previous 0.5% estimate. Overall, modest gains over recent months hint at a slow but tentative recovery.
