OFGEM’S “outrageous” tax on households is “simply not fair,” campaigners said today after the energy watchdog announced plans to lift the price cap to help suppliers cover the cost of supporting consumers who can’t afford to pay their bills.

The body said it wanted energy companies to use the extra money they receive from the cap increase to recover nearly £3 billion from customers who cannot pay their bills.

It is proposing a one-off price cap adjustment of £16, equivalent to around £1.33 a month, between next April and March 2025.