An estimated 885,000 homeowners are in arrears with their gas or electricity provider, according to research by Gocompare.com Energy.

Some 5% of British households are in energy debt, but only 13% of those struggling to pay have contacted their supplier to discuss their situation and ask for help.

The survey of over 1,280 people revealed that of those in debt, 16% owed £200 or more and 4% admitted they have no idea how much they owed.

Worryingly, the research found that 16% said they generally ignore the debt in the hope it will sort itself out over time.

An equal 16% said their energy supplier had been unsympathetic when they contacted them to seek a solution, but another 16% said they had been able to agree a repayment plan with their energy provider.

Nearly two fifths of those in arrears said they would like to switch energy supplier but they believe their arrears prevent them from doing so.

What are the rules on switching when in arrears?

According to the energy regulator, Ofgem, customers with outstanding debts can switch energy tariff or supplier – which may make it easier for them to pay-off their debts.

Energy customers who have been in debt to their supplier for less than 28 days can still switch and their outstanding debt will be added to their final bill from their old supplier.

Customers who have been in debt to their supplier for more than 28 days will need to repay the debt before they can switch. Energy suppliers cannot prevent customers from switching if the debt has resulted from a fault on their behalf.

Ofgem said many suppliers operate an informal debt threshold, ranging up to £200 per fuel, while others adopt a case-by-case approach.

Customers on a prepay meter with debts of up to £500 may be able to switch supplier if the new provider agrees to the debt transfer.

Gocompare.com Energy said customers switching gas and electricity supplier could cut their energy bill by as much as £366 a year.

‘If you’re struggling, contact your supplier as soon as you can’

Ben Wilson, spokesperson for Gocompare.com Energy, said: “If you’re struggling to pay your gas or electricity bill or you’re in debt with your energy supplier you should contact them as soon as you can.  They should work with you to agree a payment plan you can afford.  For example, letting you make smaller repayments until your financial position improves.

“Ignoring the situation, in the hope it will go away, is absolutely the worst thing you can do.  Energy suppliers have a duty to help and should give you advice about paying off your debt. If they don’t realise you’re struggling financially, they might cut off your supply.”