The body representing UK energy firms has stated that struggling households require more government assistance with their energy bills, citing persistently high prices.

Energy UK argues that the current support mechanisms are insufficient for millions of people, necessitating a more agile and targeted scheme to address the growing affordability crisis.

The organization highlighted that record levels of household debt owed to energy suppliers, reaching £4.7 billion at the end of last winter, indicate a systemic failure in providing adequate support. Energy UK chief executive Dhara Vyas emphasized that suppliers are doing what they can, but the current system is not meeting the needs of those most vulnerable.

This call for action comes as the energy price cap, set by regulator Ofgem, is expected to reach a three-year high on Wednesday. Energy consultancy Cornwall Insight predicts a 4% increase, which will impact household bills during the initial part of the upcoming winter, following a previous 13% rise in July.

These price increases are attributed to factors including the conflict in the Middle East and heatwaves across Europe that have boosted demand for power. The anticipated rise is expected to outweigh the impact of the government's decision to remove VAT on household electricity bills from October.

Currently, the £150 Warm Home Discount provides a one-off payment to households receiving means-tested benefits, funded by a levy on all energy users. Energy UK noted that while this scheme reaches six million customers, an additional 2.5 million individuals need help due to medical conditions or poorly insulated homes, leading to higher energy consumption.

Energy UK has proposed a new social discount scheme that could offer up to £450 in support to some households. This scheme would require government permission to combine data on customers' income, health, and energy usage to provide tailored and adjustable support that can adapt to changing needs and price levels. The proposed scheme is estimated to cost £1.9 billion, nearly double the current scheme's cost.

The funding for this new initiative could come from a levy on bills, similar to the current system, or be fully funded by the taxpayer through government allocations. This proposal follows previous government interventions, including approximately £40 billion in spending to support households during the energy price spikes of the previous year.