Energy News

Energy firms must be ‘sympathetic’ to struggling households

Wednesday 16 March, 2011

By Becca Talbot - becca@consumerchoices.co.uk

Energy bill debts are rising and the energy companies should be more sympathetic to those in difficulty, says energy regulator Ofgem.

High gas and electricity prices and the exceptionally cold winter have left more households in the UK in debt to their energy supplier.

The average electricity debt has increased by 4% from £279 per customer in the third quarter of 2009 to £291 in the same period of 2010.

In addition, the average gas debt shot up by 9% from £264 to £289 during those 12 months, according to the latest report from the energy regulator, Ofgem.

The regulator said: “With the recent increases in fuel bills and the very cold weather at the end of 2010, suppliers need to continue to treat customers struggling to pay sympathetically.”

Those on prepayment meters were often in the worst debt, and the report found that these households - who are usually the poorest customers - are being forced to pay higher repayment rates.

Ofcom said: “We are still concerned about some suppliers’ repayment rates and the divergence between credit and prepayment meter repayment rates, with prepayment meter customers paying more per week on average despite them being more likely to be on low incomes.”

However, Ofgem pointed out that both E.ON and Npower have lower average weekly repayment rates for customers on a prepayment meter compared with those on a credit meter.