UK Households 'Owe Energy Suppliers'

More than a quarter of energy customers in the UK owe money to their energy suppliers, according to new research.

Statistics from an online comparison site show that 6.8 million households are currently in arrears, with the average debt owed to firms being around £114. This amount of debt will prevent consumers from changing suppliers and potentially getting a better deal.

The company added that prices have gone up by a mean 15 per cent across the UK. However, many more could fall into energy debt following the recent price increases, as suppliers have to wait for their next account review before increasing customers' direct debits and consumers are not taking action themselves. This could lead to many households underpaying until their account is reviewed.

The director of consumer policy at the company has commented that "this issue has to be tackled now before it snowballs further".

"Consumers have to take a more active role in managing energy bills - don't just sit back and wait for your supplier to review your account," said the official.

Problems indicated:

•    Tip of the iceberg: Ofgem stats show 2 million consumers are on debt repayment programmes to energy suppliers.
•    Struggling: Citizens Advice (CAB) has reported to Ofgem that energy debt cases have risen by a third.
•    Energy prices go up, but many direct debits are not being amended: suppliers and consumers are waiting for the next account review.
•    Not taking action: almost 19 million households pay by direct debit, but only 13% have or will be asking their supplier to increase their direct debit now.
•    Not prepared: less than a third of energy customers paying by direct debit say that their supplier has given an indication of how much they can expect their bills to go up by as a result of recent price increases.

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