Energy debt grows

Friday, 20 April 2012 09:25

More households are falling into debt due to rising energy bills.

According to research from Consumer Focus four in every ten people had higher energy bills for winter despite the mild conditions.

Many homes recorded less energy consumption than the same time last year but were hit with higher tariffs.

Most energy firms have cut prices but these did not come into effect until late winter.

This resulted in the average annual amount of energy cost at the start of January seeing an additional £180 on top of the price recorded the prior year.

“With energy price cuts and less heating used because of the mild weather, most people will have expected their winter energy bill to be lower this year,” chief executive of Consumer Focus Mike O'Connor said

“So higher winter bills may come as a nasty shock that many customers simply can't afford.”

Those who pay by cash, cheque or prepay are the worst affected by energy debt.

About 48 per cent of consumers plan to make cut-backs in order to afford their energy bill, but this jumps up to six in every ten people with a prepay meter.

If this trend continues Consumer Focus forecasts that one third of people will be unable to pay their energy bills.
 

Third of UK consumers feel energy ‘is now unaffordable’

One in three consumers thinks that household energy has become unaffordable, while more than a quarter of households are already struggling to pay their energy bills following this year’s hefty 21 per cent price rise, a uSwitch.com survey shows.

Energy debt hits households

Home energy debt is increases affecting almost four million households in the UK. According to figures out today from uSwitch.com households owe £478 million to energy suppliers.

UK households in £624 million of energy debt

UK households are now in debt to energy suppliers to the tune of £624 million, a new study by uSwitch.co.uk has revealed. Cold winters and the high cost of energy have taken their toll it seems with nearly 5 million households now in some form of debt to their energy suppliers.

Tough outlook for families as debt rises over Christmas

Household spending on Christmas is set to rise this year, despite a drop in average incomes, leading to a higher level of debt taken on in December. Furthermore, rising inflation and lower job security look set to make 2011 a difficult year for many families.

Brits set for nasty energy bill shock this New Year

With Britain's households using around 40 per cent of their annual energy consumption during the winter months, the New Year could start with the arrival of a hefty bill, a comparison site warned today.

 

House Price Index

Energy Bill