The latest figures underline the continuing financial strain facing many consumers, particularly those already struggling to keep up with essential household expenses. According to Ofgem, domestic energy debt and arrears increased by 15% over the year across England, Wales and Scotland.
The data, covering the period from January to the end of March, relates to customers who have remained in debt for more than three months. It also shows that people without formal repayment arrangements typically owe substantially more than those who have agreed payment plans with their supplier.
Repayment Plans and Tariff Choices Could Help Ease Household Costs
According to Ofgem, customers without repayment arrangements owed an average of £1,876 for electricity and £1,623 for gas during the first quarter. Those figures are more than double the average debt carried by customers who have established repayment plans.
Energy suppliers may offer a range of support to customers experiencing financial difficulties. This can include agreeing affordable repayment plans, writing off part of an outstanding balance in some cases, or providing assistance with the cost of household appliances such as refrigerators and washing machines. Access to these measures depends on customers contacting their supplier and explaining their circumstances.
Around 22 million customers, representing roughly 40% of bill payers, are currently on fixed energy tariffs. These agreements lock in the unit price of electricity and gas, generally for a period of one year, although the final bill still depends on the amount of energy consumed.
According to reports, some fixed tariffs currently available are priced below the existing energy price cap. At the same time, customers considering these deals are advised to be aware that future falls in wholesale prices could reduce any financial advantage from fixing their tariff.
Small Changes in Payment Methods and Home Efficiency May Reduce Bills
Payment methods can also affect annual energy costs. According to Ofgem, customers who receive bills every quarter rather than paying through a monthly direct debit typically pay around £140 more each year. Approximately seven million households continue to use these standard credit accounts despite the higher cost.
Consumer advisers also recommend reviewing everyday energy use before colder weather returns. Suggested measures include improving protection against draughts, changing cooking habits, bleeding radiators to improve heating efficiency, and reducing shower times. While each individual saving may be modest, together they can contribute to lower household energy consumption.
Financial support may also be available through existing benefit schemes and local authority programmes. Pension Credit remains underclaimed despite providing financial assistance for many older people while also acting as a gateway to additional support. Grants for energy-efficiency improvements may also be available through schemes administered by local councils, although eligibility depends on factors including income and location.
Charities such as Citizens Advice can help people determine whether they qualify for financial assistance or other forms of energy-related support as households prepare for another increase in energy prices from July.
