More than five million in debt to energy supplier

24th January 2024 Arrears and Recoveries | #energy debt

The number of consumers living in households that are in debt to their energy supplier has exceeded 5.3 million households, Citizens Advice has revealed. The survey also revealed that more than two million people across will self-disconnect this winter because they cannot afford to top up their prepayment meter (PPM). Citizens Advice is warning that…

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Poorest face doubling of debt to energy suppliers

17th January 2024 Arrears and Recoveries | #energy debt

The UK’s poorest people now owe twice as much to energy suppliers as they did during the 2022 energy crisis, according to figures from management consultancy Baringa. Barings says that an energy bill price spiral where customers increasingly default on debts, leads to costs being passed onto others in the form of higher bills, further…

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Ofgem announces new proposals as energy debt rises to £2.9bn

Ofgem has announced that energy debt has reached £2.9 billion and may look to recover this by raising the price cap and increasing energy bills. The energy regulator says that the scale of energy debt means that they must take action to protect market and ensure customers are protected from uncontrolled rises This follows an…

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One in four unable to repay energy debt

25th October 2023 Arrears and Recoveries | #energy debt

One in four people with energy debts (24%) are currently unable to repay, according to new research commissioned by National Debtline. The free debt advice service is leading a coalition of 13 organisations calling on the Chancellor to introduce a ‘Help To Repay’ scheme in the Autumn Statement.  The findings, based on UK-wide research commissioned…

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Average household energy debt rises to £216

Household energy debt has hit a five-year high of £216 ahead of the winter, with the number of homes already owing money to their provider up 11% on last year  new research from, has revealed. The average household debt is up 13% on the £190 figure seen at this time last year, and the number…

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Energy suppliers announce commitment to helping customers in debt 

13th October 2023 Arrears and Recoveries | #energy debt

Fourteen energy retail companies have announced their collective commitment to go above and beyond current licensing conditions to help households struggling with energy bill debt this winter. The Winter 2023 Voluntary Debt Commitment, developed with Energy UK, Ofgem and Citizens Advice, means that energy suppliers are going further than existing regulatory obligations to provide better support…

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Ofgem reviews options as consumer debt hits £2.6bn

Energy regulator, Ofgem has announced the launch of a consultation to assesss options to protect the energy market and consumers from the risk of spiralling debt. Figures obtained by the regulator this summer show that energy debt reached £2.6 billion, its highest ever level, due to a combination of the rise in wholesale energy prices,…

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Energy bill debt rises 36%

EDF Energy has reported that the number of homes falling into debt on their energy bills has increased by 36% since the beginning of the year. The company also said standing charges on energy bills have increased by 55% since April 2021. The energy company has announced that it is boosting support for vulnerable customers…

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6.6 million households still in fuel poverty

New research by National Energy Action has found that the number of households in fuel poverty is approximately 6.6 million. Energy bills are still approximately almost double the level of October 2021. Just 21 months ago, the typical household paid £1,271 a year, and even with the new price, 2 million extra UK households are in…

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3.2m ran out of credit on prepayment meters couldn’t afford to top up

12th January 2023 Arrears and Recoveries | #energy debt

New research from Citizens Advice found that 3.2 million people across Great Britain ran out of credit on their prepayment meter last year because they couldn’t afford to top up. That’s one person every 10 seconds – cut off from their energy supply as the cost-of-living crisis left people struggling to keep the lights on.…

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Two thirds of households will be unable to afford energy with April price rises

20th December 2022 Arrears and Recoveries | #energy debt

The number of families with children at home who believe they won’t be able to afford their energy bills is set to rise by an additional 27%  over the next three months, pushing an additional one in four families into financial struggle, according to Comparethemarket’s latest Household Financial Confidence Tracker. Over a third (36%) of households…

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Energy suppliers face £1.9bn of debt as households struggle to pay their bills

14th December 2022 Arrears and Recoveries | #energy debt

A new report from Cornwall Insight and Complete Strategy has shown domestic energy suppliers could be exposed to approximately £1.9bn of debt1, of which a significant portion could be unrecoverable. The amount of unrecoverable debt, known as bad debt, facing suppliers is increasing with the cost-of-living crisis leaving more households unable to pay their bills.…

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Three in four households have avoided turning on the heating 

14th December 2022 Consumer Collections | #energy debt

At some point in 2022, 74% of households have avoided turning on the heating despite wanting to. In addition, 55% have turned down the temperature in their home, 50% have reduced the use of their oven and 31% are only heating part of their homes according to new research by abrdn Financial Fairness Trust. The…

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