The amount owed to energy suppliers by customers has surged to a new record of £4.79bn, regulator Ofgem has said, as total debt and arrears in England, Wales and Scotland rose by 15% in a year. The figures, covering January to March, show average arrears for those without a repayment plan stand at £1,876 for electricity and £1,623 for gas – more than double the level for customers who have agreed a repayment schedule.
The rise comes as energy prices are set to increase for millions of households in July, driven by higher gas costs. But experts say there are still ways to cut bills, even for those who feel they have exhausted every saving. Suppliers may write off some debt, offer payment plans, or help with the cost of white goods such as fridges and washing machines – but only if customers tell them they are struggling.
“Energy debt hits record £4.79bn as Ofgem reports 15% rise in arrears and experts urge households to seek help.”
About 22 million people – roughly 40% of billpayers – are on fixed tariffs, which typically offer cheaper rates than the price cap. However, if international events cause prices to fall sharply, those savings may not be so clear-cut. Meanwhile, around seven million households still use standard credit accounts, paying quarterly rather than by monthly direct debit. That option is about £140 a year more expensive, according to Ofgem.
Experts suggest taking a fresh look at home energy habits. With a record-breaking heatwave under way, now is the time to check for draughts, change cooking habits, bleed radiators and generally improve efficiency. Even shorter showers can make a small difference – egg timers or four-minute songs can help keep time.
Millions of pounds in benefits go unclaimed each year, with pension credit particularly underclaimed. It can act as a gateway to other financial support for older people. Grants for energy efficiency improvements may also be available through local council schemes, and charities such as Citizens Advice can help people check if they qualify.