Failed energy firms may see bills rise by £150

The mass failure of energy suppliers could potentially add over £150 to bills as energy prices rocket, say finance advice experts.

Citizens Advice found that the bill following a raft of supplierfailureslastyear–including the administration costs for Bulb – stands at £4.6bn, and could result in customers forking out an extra £164.

Since last August, 28 energy suppliers have failed, causing turmoil for more than four million customers. Bulb was placed into "special administration" when it collapsed in November last year and was propped up with an initial taxpayer loan of £1.7bn to cover the normal running of the firm until a buyer could be found.

The taxpayer bailout was the biggest since Royal Bank of Scotland, Lloyds Banking Group and Halifax Bank of Scotland in 2008.

The Citizens Advice report comes days after the energy price cap - which is set by regulator Ofgem - was tipped to rise to £3,364 in January, £360 more than previously predicted.

Dame Clare Moriarty, chief executive of Citizens Advice, said: "More than half a year since the energy market went into freefall, the bill for supplier failures is still mounting.

"An overhaul is needed before winter piles more pressure on suppliers and customers. The Government must improve the supplier failure process and ensure people who're struggling aren't chased for debts or left in limbo when they're waiting for a refund."

Earlier this month, the charity found that customer service standards had plummeted since June last year, when many energy firms went under and millions of customers found themselves shifted to new suppliers.