Everest industry news

23 April 2008

Almost seven million households in the UK owe money to energy suppliers, with average debts of £114, uSwitch figures show.

These latest statistics underline the importance of taking steps to reduce fuel consumption, which can not only ease the pressure on your wallet, but also help save the environment.

With energy prices up 15 per cent on average since the start of the year and over a quarter of customers in the red following their latest bill, the time to take action is now, argues the price comparison service.

uSwitch cites figures from the watchdog Ofgem which show that two million energy customers are on debt repayment programmes with their suppliers. Energy debt cases brought to Citizens Advice have also risen by a third in recent months.

Part of the problem stems from the fact that many households pay with direct debits that do not increase in line with actual costs, generating unnoticed debts.

"This issue has to be tackled now before it snowballs further," said Ann Robinson, director of consumer policy at uSwitch, referring to the fact that 6.8 million customers are in the red.

"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," she added.

Switching to a cheaper provider is one way of cutting monthly bills, though it is often more practical to make your property greener and in turn more desirable.

Recommended steps include installing double glazing, which helps retain heat in the home and save fuel wastage, or opting for added insulation, or a new boiler.