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Manchester Evening News
Manchester Evening News
Business
Stephen Hurrell

Shocking state of UK's 'energy debt' as six million households in the red

Over six million UK households owe money on energy bills as the cost of living crisis means nearly a quarter of customers face a battle to pay off rising energy bills. The average household that is in energy debt owes an average of £188 with the number of households in debt to their energy supplier rising by half in the last year, according to research by USwitch.

It means six million bill-payers face higher prices and a debt to pay off, with more price hikes promised in November as the cost of living crisis hits households across the UK. Nearly two in five households (38%) are in credit with their supplier, a decrease of almost a fifth (18%) compared to last year and the total credit across the UK is £500 million lower than this time last year.

Octopus Energy customers are the most likely to be in debit with 33% of householders owing money on their energy bills. A total of 25% of Scottish Power and Eon customers are in debit, while 22% of OVO customers owe money. SSE is 18% and British Gas and EDF have 16% of customers in debit.

Read more: Full list of energy prices with British Gas, Scottish Power, EDF and more as millions set to receive new bills

Justina Miltienyte, Uswitch energy policy expert, says: “Following months of warnings, energy price rises are finally kicking in.

“Affected bill-payers have heard from their supplier in recent weeks about how their bill will change, and households will be trying to figure out what they can do to reduce the impact. The fact that the price increases come into effect just as we enter spring might be a small relief, as many households will soon be turning off their heating.

“But this situation is even worse for those in fuel poverty, who are already trapped in a vicious cycle of energy debt. It calls into sharp focus just how vital the Government support for the most vulnerable households is and how inadequate it has become.

Customers who are in energy debt are being urged to take monthly meter readings to ensure bills are as accurate as possible and avoid building excessive debt or credit on their account. If you are in energy debt USwitch has launched a list of next steps to help here. They include checking for hardship funds and grants that can help keep bills down and comparing your energy tariff to ensure you are on the best deal.

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