More customers in debt to energy suppliers

Over a million electricity and 0.9m gas customers are in debt to their energy supplier, according to official figures.

The report from industry regulator Ofgem shows it is the poorest customers who are being most aggresively pursued for unpaid bills, with suppliers forcing those on pre-payment meters to clear their debts faster than other customers

The number of gas customers on pre-paid meters who are repaying debt has shot up by 15% compared to the end of 2009.

The average electricity debt has increased by 4% from £279 per customer in third quarter of 2009 to £291 in the same period of 2010, while the average gas debt shot up by 9% from £264 to £289.

Customers who are struggling to repay their energy bills have seen the average bill rise to £1,132 a year – over 38% higher than in 2008.

Ofgem collects debt data from suppliers so that it can assess the amount of debt repayments and customer service disconnections due to outstanding payments.

Last week uSwitch.com reported that 5m households are in debt to their energy supplier, owing £624m collectively.

The energy comparison website argues that the statistics from Ofgem barely scratch the surface of the problem because it does not include customers who are on debt repayment programmes.

Ann Robinson, director of consumer policy at uSwitch.com, said: ‘Ofgem’s statistics are damning, but they skim the surface and conceal the real size and scope of energy debt in Britain today. Ofgem completely overlooks households that owe money to suppliers but are not on an official repayment programme.’

source: Thisismoney.co.uk