Average Electricity And Gas Debt On The Rise

According to Ofgem the average electricity and gas debt has risen but uSwitch warn that statistics provided only scratch the surface and that energy debt across Britain is much higher.

Ofgem has reported that the average electricity debt has increased by 4% from £279 in Q3 2009 to £291 in Q3 2010.

In the same period, the average gas debt has gone up by 9% from £264 to £289 and that the number of gas customers with debts over £600 is 12% higher than in Q3 2009.

But as Ann Robinson, Director of Consumer Policy at uSwitch.com, comments “Ofgem’s statistics are damning, but they skim the surface and conceal the real size and scope of energy debt in Britain today.

Ofgem completely overlooks households that owe money to suppliers but are not on an official repayment programme. Our research shows that nearly 5 million households owe money to suppliers and that collectively they are in debt to the tune of £624 million^[1].

And adds “Ofgem says that difficult economic conditions, the price hike in 2008 and the cold winter at the beginning of 2010 continue to make it difficult for people to pay off their debts”

As energy bills continue to rise, households will have to make sure they are paying the lowest possible price for energy and try and cut down on the amount of energy used.

Consumers can find advice and factsheets about energy debt at uSwitch.com.

Note:

1. Research conducted online by YouGov Plc on behalf of uSwitch.com. Fieldwork took place from 21 – 24 January 2011 among 2,022 people with decision making involvement with energy suppliers. Data is weighted. According to the research, 7% of respondents were in debt/arrears by up to £50, 4% between £51 and £100, 4% between £101 and £200, 2% between £201 and £300, 1% between £301 to £500 and 1% more than £500. This has been taken as 19% of households in debt which, on the basis of 26 million households, equals 4.94 million households or energy customers. The average amount owed is £126.34, which is a total of £624 million across the 4.9 million households in debt.