H
ousehold power debt has hit a five-year excessive of £216 forward of the winter, with the variety of houses already owing cash to their supplier up 11% on final yr, in response to a survey.
The common family debt is up 13% on the £190 seen at the moment final yr, whereas the variety of houses that owe cash to their provider has risen from 2,800,000 to three,200,000, a ballot for comparability web site Uswitch discovered.
More than 9 million households haven’t any power credit score going into winter when they need to ideally have constructed up a steadiness to cowl the upper prices of heating over the colder months, the survey suggests.
Two-fifths of these in arrears (40%) say their debt is increased than final yr, and 1 / 4 (28%) consider their place is about the identical as 12 months in the past.
Almost one in seven (14%) say they’ve moved from being in credit score a yr in the past to being in debt now.
More than half of households (53%) are apprehensive about how they’ll pay their power payments this winter, with only a quarter (25%) saying they’re unconcerned.
Almost a fifth (18%) plan to repay the debt in a single lump sum, 1 / 4 (25%) will improve their direct debit, and one in seven (13%) hope to agree on a compensation plan with their supplier.
A tenth of households (9%) say they can’t afford to repay their arrears.
Nearly half (49%) say they’ll put on additional layers at residence to allow them to maintain the heating at a decrease stage, whereas one in 4 (25%) say they won’t be turning on the heating, even when it’s chilly.
The ballot additionally discovered that nearly three-fifths of households (59%) have constructed up a credit score steadiness forward of winter, at a median of £236 – down barely from £249 final autumn.
Richard Neudegg, director of regulation at Uswitch, mentioned: “Building up a war chest of around two months of energy credit is important as we head into winter, and it’s worrying that more than nine million households have no buffer against the coldest months.
“Average household energy debt for autumn is at the highest level we’ve seen in more than five years. And with the price cap changing every three months, households are facing even more uncertainty this year as prices are expected to rise again in January.
If your energy account is going into debt or you are behind on your bill payments, speak to your provider as soon as possible. They should be able to help you find a solution
“If your energy account is going into debt or you are behind on your bill payments, speak to your provider as soon as possible. They should be able to help you find a solution, such as working out a more affordable payment plan. You may also find you are eligible for additional support such as hardship funds and other energy help schemes.”
Last week Britain’s power watchdog introduced it was contemplating a one-off improve to the power worth cap of as much as £17 a yr to assist stop suppliers from going bust as they face spiralling shopper money owed.
Ofgem mentioned it was launching a session on choices to guard the power market after figures in the summertime confirmed that debt reached a document £2.6 billion on account of hovering wholesale costs and cost-of-living pressures on households.
The watchdog mentioned it was contemplating a one-off improve within the worth cap that would see households pay as much as £17 a yr extra – or £1.50 a month – on common “to reduce the risk of energy firms going bust or leaving the market as a result of unrecoverable debt”.
Opinium surveyed 2,000 power invoice payers between September 26 and October 2.
