Britons GBP624m In Debt To Energy Companies

Tue, 15 Mar 2011

New research has revealed that nearly five million households in the UK are in debt to their energy suppliers .

Figures released by uSwitch.com show that UK residents now collectively owe some £624 million to energy providers, equal to an average of £126 per person.

Although average debt is 4.5 per cent lower than last year’s figure of £132, it is still some 10.5 per cent higher than the £114 owed in 2008, the price comparison and switching site claims.

uSwitch also warns that this type of debt is likely to rise again following the recent price hikes by the country's biggest six energy suppliers, taking the average household energy bill to £1,132 a year.

Ann Robinson, director of consumer policy at uSwitch.com, says: "Despite two years of price cuts almost two in ten households are in debt to energy suppliers – and now prices are going back up again. This is a real concern."

"The fact is that consumers were knocked for six by the 41 per cent or £334 increase in energy prices in 2008 and have been struggling to find their feet ever since.

"With prices now increasing by an average of 5.9 per cent or £6, that struggle is about to become a lot harder."

Audrey Gallacher, head of energy at Consumer Focus, adds: "These are worrying figures. High energy prices and a cold winter have clearly hit customers hard, leaving many households struggling to afford their bills."

"If people are falling into debt we would urge them to contact their supplier as soon as possible for help on repaying debt and cutting their energy use."

"Energy companies must play fair by customers and set repayments at a level that people can afford, but people also need to have confidence that the price they’re being asked to pay is fair."
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