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May 2008
6.8 million households in debt to energy suppliers

New research from the independent price comparison and switching service reveals that 6.8 million households (26%) are in debt to energy suppliers. The average debt is £114 which may well prevent householders from transferring to a different energy supplier to try and take advantage of lower energy costs.

Energy prices have gone up by approx £135 per household since the beginning of the year with the average household energy bill standing at over £1000. Although some suppliers have been notifying customers of price increases they are not allowed to increase direct debits until customer accounts are reviewed. This could leave many consumers "in the red" without them realising as their direct debits have not been increased in line with ever rising energy costs. Although some customers have asked their providers to increase their direct debits many are still risking a shortfall.

According to Ofgem, 2 million energy customers are on a prepayment meter set to recover a debt or on an official debt repayment programme scheduled to last longer than 13 weeks. Their energy debt statistics only include customers who have a specific arrangement with the supplier to repay outstanding arrears including direct debit customers who have specifically joined a repayment scheme.

Customers are recommended to contact their provider and increase their direct debit payments and also consider changing to a different supplier to take advantage of lower costs energy deals if possible. It is also important that regular meter readings are taken to ensure bills are as accurate as possible.

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Article referenced from http://www.easier.com/view/Finance/Household_Bills/Gas_and_Electricity/article-175222.html

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