How you can save money on your energy bill as debts rise
Image source, Getty Images
By
Cost of living correspondent
The amount of money owed to energy suppliers by customers has risen again to a new record high of £4.79bn.
Regulator Ofgem said that total debt and arrears in England, Wales and Scotland had risen by 15% in a year.
The data, external is updated every three months, with the newly-published figures covering the period from January to the end of March. They relate to energy customers who have been in debt for more than three months.
Average arrears for those without a repayment plan hit £1,876 for electricity and £1,623 for gas – more than twice the amount as those who have a repayment agreement.
Energy prices will rise for millions of households in July – driven by the increase in the cost of gas.
Experts say there are options to cut bills, even though people may feel they have already made every saving possible.
Collectively people owe £4.79bn in unpaid bills and charges.
Suppliers say they may write off some of that debt, provide payment plans, or help with the cost of white goods, such as fridges and washing machines - but only if you tell them you're in trouble.
You can check what your supplier offers through various support measures, external.
Some 22 million people - about 40% of billpayers - have the certainty of fixed tariffs.
In these deals, the cost per unit does not change for the term of the tariff, which is usually a year. The total bill still depends on the amount of energy used.
Options on the market are cheaper than the price cap level. However, if international events do change and prices fall sharply, savings might not be so clear-cut.
Receiving your bill every quarter, rather paying a monthly direct debit, is typically about £140 a year more expensive, says regulator Ofgem.
There are still about seven million of these so-called standard credit accounts. Although some people like the quarterly payment of bills, it is a more expensive option.
Image source, Getty Images
The record-breaking heatwave is not necessarily the time you think about getting your home winter-ready.
But experts say it is the perfect time to check if you can do more to block draughts, change cooking habits, bleed radiators and generally be more energy efficient.
Short shower times can also make a difference, albeit small. There are egg timers and even four-minute songs that can keep time for you.
Millions of pounds goes unclaimed in the benefits system. Pension credit, in particular, is underclaimed and yet it can help older people with financial support as a gateway to other benefits.
Grants for energy efficiency improvements may also available through schemes organised by local councils.
Eligibility criteria, such as income and location, varies. Charities such as Citizens Advice can help people see if they can get assistance.
Read the full story at BBC ↗
Customer debt to energy suppliers in England, Wales and Scotland has grown to £4.79bn as of the first quarter of 2024, reflecting a 15% annual increase. Those without formal repayment arrangements carry significantly higher arrears. Energy prices will rise in July driven by gas cost increases. Suppliers offer debt write-offs, payment plans, and appliance assistance for customers who disclose financial difficulty. Households have several options to manage costs: approximately 22 million people already use fixed-rate tariffs that lock per-unit prices for typically one year; switching from quarterly to monthly billing can save around £140 annually; home efficiency measures such as draught-sealing and radiator bleeding reduce consumption; and unclaimed benefits including Pension Credit and local council energy grants may provide financial relief.
Read the full story at BBC ↗
Image source, Getty Images
By
Cost of living correspondent
The amount of money owed to energy suppliers by customers has risen again to a new record high of £4.79bn.
Regulator Ofgem said that total debt and arrears in England, Wales and Scotland had risen by 15% in a year.
The data, external is updated every three months, with the newly-published figures covering the period from January to the end of March. They relate to energy customers who have been in debt for more than three months.
Average arrears for those without a repayment plan hit £1,876 for electricity and £1,623 for gas – more than twice the amount as those who have a repayment agreement.
Energy prices will rise for millions of households in July – driven by the increase in the cost of gas.
Experts say there are options to cut bills, even though people may feel they have already made every saving possible.
Collectively people owe £4.79bn in unpaid bills and charges.
Suppliers say they may write off some of that debt, provide payment plans, or help with the cost of white goods, such as fridges and washing machines - but only if you tell them you're in trouble.
You can check what your supplier offers through various support measures, external.
Some 22 million people - about 40% of billpayers - have the certainty of fixed tariffs.
In these deals, the cost per unit does not change for the term of the tariff, which is usually a year. The total bill still depends on the amount of energy used.
Options on the market are cheaper than the price cap level. However, if international events do change and prices fall sharply, savings might not be so clear-cut.
Receiving your bill every quarter, rather paying a monthly direct debit, is typically about £140 a year more expensive, says regulator Ofgem.
There are still about seven million of these so-called standard credit accounts. Although some people like the quarterly payment of bills, it is a more expensive option.
Image source, Getty Images
The record-breaking heatwave is not necessarily the time you think about getting your home winter-ready.
But experts say it is the perfect time to check if you can do more to block draughts, change cooking habits, bleed radiators and generally be more energy efficient.
Short shower times can also make a difference, albeit small. There are egg timers and even four-minute songs that can keep time for you.
Millions of pounds goes unclaimed in the benefits system. Pension credit, in particular, is underclaimed and yet it can help older people with financial support as a gateway to other benefits.
Grants for energy efficiency improvements may also available through schemes organised by local councils.
Eligibility criteria, such as income and location, varies. Charities such as Citizens Advice can help people see if they can get assistance.
Read the full story at BBC ↗
Energy customer debt reached a record £4.79bn in England, Wales and Scotland as of March 2024 Total debt and arrears rose 15% in a year Average arrears for those without repayment plans are £1,876 for electricity and £1,623 for gas These figures represent more than twice the amount for those with repayment agreements Energy prices will rise in July for millions of households The July rise is driven by increased gas costs About 22 million people—40% of billpayers—have fixed-rate tariffs Quarterly billing is typically around £140 per year more expensive than monthly direct debit Around seven million people still use standard credit accounts with quarterly billing Experts say there are options to cut bills even when people feel they have already made every saving possible Summer is described as the perfect time to check home energy efficiency measures Short shower times can make a difference to energy bills Pension Credit is underclaimed despite availability to eligible older people
Read the full story at BBC ↗
- Energy customer debt in the UK reached a record £4.79bn as of March, up 15% year-on-year, with those without repayment plans averaging £1,876 for electricity and £1,623 for gas arrears.
- Energy bills will rise in July for millions of households due to increased gas costs.
- Households can reduce bills through fixed-rate tariffs, switching from quarterly to monthly billing, improving home insulation, and accessing unclaimed benefits like Pension Credit.