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Debt problems – energy debt

16/03/2011 Get Adobe Flash player

People in the UK that are currently dealing with debt problems are having their situation made worse by the energy debt currently blighting the country.

And consumer group uSwitch.com is warning that Ofgem's new energy debt figures are hardly scratching the surface as to the dire straights suffered by some consumers.

Ofgem's new statistics on energy debt and disconnections show that one million electricity customers and 0.9 million gas customers are officially repaying an energy debt right now.

The number of gas pay per month customers repaying debts to suppliers has shot up by 15 per compared to Quarter Three of 2009.

Average electricity debt has gone up by four per cent from £279 in Quarter Three of 2009 - to £291 during the same period of 2010.

But uSwitch says Ofgem isn’t including customers already on debt repayment programmes, which uSwitch reveals amounts to as many as five million households.

This equates to nearly one in five residential properties in the UK.

Debt solutions expert Kevin Still says, "Utility costs are a priority expenditure and a negotiated repayment arrangement for any energy debts should be prioritised over unsecured debts.

Debt advice is often required to allow indebted UK consumers to properly understand the implications of not paying priority creditors first." ADNFCR-2613-ID-19953755-ADNFCR

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