Energy News

Energy debts crippling British families

Monday, 25 January 2010

By Hazel Cottrell - hazel@consumerchoices.co.uk

An increasing number of people are entering energy debt repayment plans, as the high cost of energy takes its toll.

The average energy debt was 20% higher in the third quarter of 2009, compared with the same period in 2008.

There were also double-digit increases in the number of gas and electricity customers entering into new debt repayment arrangements this quarter, compared to the previous quarter, according to Ofgem.

The energy regulator’s quarterly social obligations report says this increase “could be reflective of an increase in the number of customers entering debt for the first time due to the recession.”

Thomas Lyon, energy expert at uSwitch.com, said: “The recession will have played a part, but Ofgem cannot afford to brush the cost of energy under the carpet.”

The average energy bill is now £1,239; £327 higher than at the start of 2008, according to uSwitch.com.

Chris Eagle, commercial manager at Energychoices.co.uk, said: “Energy companies are a law unto themselves. Unless Ofgem takes action and forces them to cut their prices, it is down to the consumer to try and limit the damage.

“You can cut your energy bills by comparing energy tariffs to ensure you are on the best deal, paying your bills by direct debit and practising energy efficiency to reduce the amount of energy you use.”