Average length of energy debt repayment plans increases

The average length of energy debt repayment plans for electricity usage has now surpassed five years, jumping from three years just 12 months ago.

According to data from energy providers, obtained via a Freedom of Information (FOI) to the energy regulator Ofgem submitted by Compare the Market, energy bill payers on debt repayment plans for electricity usage were taking 97 more weeks to clear their arrears between April and June 2025, compared to the three months in 2024.

The increase marks a 55% rise year-on-year in the average length of these types of debt repayment plans administered across energy providers

Between April and June 2025, bill payers were taking more than 274 weeks (5.26 years) to clear their electricity debts, compared to a significantly lesser 176.9 weeks (3.39 years) between April and June 2024.

During the same period, bill payers were taking more than 257 weeks (4.94 years) to clear their gas debts,( compared to the 177.8 weeks (3.41 years) it took them to pay off their gas in the previous year.

Tom Lyon, Energy Expert at Compare the Market, said “A jump in the average length of energy debt repayment plans for electricity usage from just over three to five years in as little as 12 months highlights the growing financial strain on households. Stretching repayments over longer periods may make bills more manageable each month, but it also means people are living with debt for much longer.

“It’s a good idea for anyone struggling to keep up with energy payments to speak to their energy provider as early as possible as support and tailored repayment solutions are available. Customers with existing debt should also review their current tariff options, as these are often more competitive than default or variable rates. It’s important to note that consumers cannot switch to a new supplier if they have debt older than 28 days, so exploring existing customer deals could still help reduce costs and ease financial pressure.”