Energy bills could rise by £17 to protect firms

A one-off rise to energy bills of £17 a year to help prevent suppliers going bust is being considered by the UK's energy watchdog.

Ofgem said it was considering the measure to protect the market and consumers after figures showed energy debts reached £2.6bn in the summer.

The rise in debt was due to both the increase in wholesale energy prices and wider cost of living pressures.

Any rise in bills would not take place until April next year, Ofgem said.

"We know that households across the country are struggling with wider cost of living challenges, including energy, so any decision to add costs to the price cap is not one we take lightly," said Tim Jarvis, director general for markets at Ofgem.

"However, the scale of unrecoverable debt and the potential risk of suppliers leaving the market or going bust, which passes on even greater costs to households, means we must look at all the regulatory options available to us."