You are here: Home - Household Bills - News -

Millions of households in debt to energy suppliers

Written by:

Research from, the independent price comparison and switching service, reveals that 6.8 million households are ‘in the red’ to energy suppliers.

The average debt is £114, enough to prevent consumers from being able to switch suppliers. However, many more could fall into energy debt following recent price increases, as suppliers have to wait for their next account review before increasing customers’ Direct Debits and consumers are not taking action themselves.

Energy prices have gone up by around £136 per household since the beginning of the year and the average household energy bill now stands at £1,048. However, suppliers cannot automatically increase Direct Debits until they have reviewed the account. This is to ensure that customers are paying the correct amount and to avoid putting up people’s monthly payments unnecessarily.

Unfortunately though, it could leave many households underpaying until their account is reviewed.

Ann Robinson, director of consumer policy at, said: “6.8 million households are in debt to energy suppliers and this issue has to be tackled now before it snowballs further.

“As well as the misery and uncertainty that debt can cause, owing money to an energy supplier can prevent consumers from being able to reduce household expenditure by moving to a lower cost energy deal. It is a barrier to switching and consumers cannot afford to have this option closed to them in today’s economic environment.

“Consumers have to take a more active role in managing energy bills – don’t just sit back and wait for your supplier to review your account. If you are near or already in the red and can afford to increase your payments, contact your supplier. Make sure you are paying the lowest possible price for your energy by shopping around, become more energy efficient and don’t get caught out by inaccurate billing – make sure you or your supplier is taking regular meter readings. Simply relying on estimated bills after a price rise could be a shortcut to debt.”


Tag Box




Financial fitness

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Are you a first-time buyer looking for a mortgage?

Look no further, get the help you need by searching for your perfect mortgage

Which ISA is right for you? A round up of the six products available in 2017

From cash to innovative finance to lifetime, here's our guide to the ISA products available to savers this yea...

Guide to buy-to-let tax changes

In late 2015, former Chancellor George Osborne announced a range of  tax measures aimed at landlords, which t...

A guide to switching energy provider

All you need to know about switching from one energy supplier to another.

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

Five fund tips for a 0.25% interest rate environment

With interest rates stuck at a record low 0.25% and expectations rates could fall to close to zero, here are ...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co...

Investing your money

Alliance Trust Plc gives you smart insight into how to invest your money

Money Tips of the Week

Read previous post:
Customers dealing with debt sooner

The average level of debt of people on informal debt management plans has fallen below the £26,000 and is now...