Energy Bill Debts On The Increase

Average energy bill debts have increased 16% in the last 2 years and the coldest winter for 30 years has sent UK households deeper into debt with energy suppliers.

According to uSwitch.com, over 20% of households are now in debt with energy suppliers. Although this percentage is down on the previous year, the average amount owed is higher. Over 40% of those in debt to their energy supplier over more than they did last year.

Despite a long run of low wholesale prices, only four of the big six energy suppliers – British Gas, Scottish and Southern Energy, E.ON and npower – have announced a drop in prices this year. Of these, only British Gas has so far implemented their price reduction.

Ann Robinson, Director of Consumer Policy at uSwitch.com, says: “The increase in energy debt this year is symptomatic of the fact that we are entering an era of high cost energy. Households will have to adapt if they are to protect themselves from spiralling energy bills.

There are two key steps to this – make sure you are paying the lowest possible price for your energy and cut down on the amount of energy you use. Consumers should also make sure that they or their supplier are taking regular meter readings as relying on estimated bills can be a shortcut to debt. Any consumers who are concerned about managing their energy bills should contact their supplier to discuss the options.”

You can reduce your energy consumption to help save money on your gas and electricity bills – for example, insulate your loft, lower your washing machine temperature and turn appliances off as well as seek to turn your heating down.