Chancellor, Rishi Sunak, announced in his budget earlier this month that there would be no VAT cut to household energy bills. Indeed, as winter draws closer and energy consumers grow both more demanding and increasingly nervous, this news came as a blow for many.
However, this announcement should not mean people should stop paying their energy bills. And here’s why…
Why Are Energy Prices Rising?
We have all seen the recent panic caused by the energy crisis. In part, this has been caused by the fast and unexpected rise in the price of energy, especially gas. Indeed, a 250% increase has seen several energy providers go out of business, whilst many consumers have seen a 12% increase in their household bills in general.
And even if the sector levels out and stabilises, the regular consumer is set to bore the brunt of the costs in the future.
VAT and Energy Bills
In comparison to the usual 20% VAT charge, the 5% VAT cost on energy bills seems to be low; however, in the face of rising panic and increasing costs, this is seemingly high.
Simply put, despite the concerns raised by a number of people, be it those in politics, business or the general public, the request to reduce the VAT charge has fell on relatively deaf ears.
And so, you should absolutely not fall behind on your energy bills. Here’s why.
Why You Should Not Fall Behind on Your Energy Bills
Using a debt recovery agency is highly effective, and nothing yields results as much as instructing a team of debt retrieval specialists. So, if you were to fall behind on your energy bills, expect a visit from us. And, if you are a landlord or energy provider and require help pursuing an unpaid bill, then look no further than a debt recovery agency such as Cobra.
Indeed, as reported in the Guardian in June: “Gas and electricity customers face the prospect of debt collectors chasing up unpaid bills after the energy industry regulator told suppliers they no longer had to offer unlimited Covid payment holidays.”
Furthermore, falling behind on your energy bills could have a hugely negative impact on everything from your credit score to your ability to buy a house. Even recently, Ofgem gave the green light for the restart of debt collections.
Trust Cobra: The Debt Recovery Experts
With over 75 years’ worth of combined experience, and with years’ worth of knowledge of the energy sector, instructing the likes of our specialist energy team here at Cobra is one of the best things you can do to recover the money you’re owed.
Established over a decade ago, our specialist private debt recovery team are vastly experienced when it comes to working within and for the energy sector. So, if you need an energy debt recovering, and if you’re a small energy company, then instruct Cobra on 0151 526 4222.
You can also email admin@cobrafinancial.co.uk
