Household energy debt has soared by 24% compared with this time last year while consumers owe £100 million more to their supplier than they did in 2016, a survey suggests.
Some three million UK household bill payers, or 11%, currently owe an average of £134 or a collective £400 million to their energy supplier at a time when – just as winter begins – they would expect to be in credit, according to the survey for uSwitch.
The collective debt is up by £75 million on last year, while the number of households owing money has increased by more than 300,000 (12%) since autumn last year, uSwitch said.
Looking further back, consumers owe their suppliers 36% more than they did in 2016.
However, more than a third of bill payers (36%) think they used less energy this summer than in 2017 and 41% are already worrying about their energy bills ahead of winter, the poll suggests.
The higher levels of debt this year follow an unprecedented number of price hikes from large and small suppliers due to rising wholesale costs.
Since January, a total of 32 energy providers have announced 55 price rises, adding nearly £900 million a year to domestic energy bills.
Ofgem announced in September that more than 11 million households will save a combined £1 billion a year under plans to cap rip-off gas and electricity tariffs at £1,136.
The regulator said each typical customer would save around £75 a year on average, with those on the most expensive default standard variable tariffs saving more than £120 a year when the cap comes into effect, hopefully by the end of the year.
But uSwitch energy spokesman Rik Smith urged customers to switch, saying it could save them up to £482 a year, “much more than the Government’s planned price cap can deliver”.
He said: “The soaring number of households in debt to their energy supplier is a clear indication of the pressure people are under just to make ends meet.
“After so many price rises this year, a lot of people may have received a price rise notification over the summer but not switched to a cheaper deal. Now is the time for consumers to take action, by making their homes more energy efficient or ensuring they don’t pay any more than they need to for the energy they use.
“For anyone struggling with their energy bills and worrying about keeping warm, there is help available. They should speak to their supplier as soon as possible about repayment plans and other assistance on offer, and find out if they’re eligible for Government support with energy bills.”
An Energy UK spokesman said: “With wholesale costs having risen by at least 30% over the last year, suppliers across the market have been forced to raise prices so customers should also check whether they are on the best deal – either with their own supplier or seeing what’s on offer from over 70 providers across the market – and consider whether to get a fixed price deal which will protect against further rises.
“How suppliers can best help customers in debt is one of the issues currently being considered by the independently chaired Commission for Customers in Vulnerable Circumstances, which is looking at how to better serve those customers in the most need. It will report back in the new year.”
Opinium surveyed 2,032 adults responsible for energy switching online between October 9-12.
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