Consumers 'fall into energy debt'
Published On 18 July 2007
Around two million people in the UK are in debt to their utility supplier, new research suggests.Figures released by Ofgem show that over two million customers are now officially in debt to their utility supplier, and consumer watchdog uSwitch.com has warned that the problem is increasing.
In fact, the average size of these debts has increased by 33 per cent since 2004 - from £150 to just under £200.
However, eight per cent of people in debt own more than £600, putting them at risk of being cut off by their utility supplier.
Worryingly, around one in four customers in debt have switched to a pre-payment meter (PPM) - which uSwitch warns could end up being more expensive than traditional metering systems.
"There is an alarming propensity for energy providers to push customers in debt onto pre-payment meters," commented Ann Robinson, consumer policy director at the site.
"This is a cop-out as it is often their own poor billing and debt management practices that force consumers into debt in the first place.
"Rather than getting their own house in order and tackling the root causes of the energy debt, providers peddle PPMs which should carry a financial health warning."
Recently, the utility watchdog, energywatch, called on the government to speed up the roll-out of new 'smart meters' to help consumers monitor their energy usage.
