Energy firms need to help those in debt

People in debt are not being helped enough by energy suppliers, according to a new report.

The joint study from Ofgem and Consumer Focus shows that many firms aren’t taking into account the bill-paying ability of people who need debt help.

Ofgem has now set out guidelines for suppliers so they can better handle customers who are in debt. These include making proactive contact with them and making sure they understand what they owe and when it’s due.

The regulator also recommended that debt repayments to suppliers should be tailored according to the customer’s individual needs.

Sarah Harrison from Ofgem commented that whilst the number of people in debt to their energy suppliers has been stable since the start of 2009, the amount that each one owes has been increasing.

Kevin Still, director of Atlantic Financial Management, says: "Energy debts are priority household debts along with the mortgage, rent and council tax.

There are protocols for dealing with mortgage and rent arrears, so dealing with energy debts should be no different. As a Debt Management Company we will look at clearing these debts as a priority based upon affordability by taking an overall view of the household income and expenditure."

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