Tuesday, 17 July 2007

Energy debts jump

Soaring prices mean two million people owe their energy supplier an average of almost £200, according to the energy regulator
Two million people are now in debt to energy companies as fuel bills have soared, according to new research.

Official figures from Ofgem, the energy regulator, have revealed that the average energy debt has jumped by 33 per cent since 2004, from £150 to just under £200.

Commentators have warned this could be just the tip of the iceberg: the figures include only those with an official debt-repayment plan, not those who have simply fallen behind with their repayments, according to comparison site uSwitch.com.

It said people could save an average of £210 a year by switching to a cheaper dual-fuel supplier, leaving them with enough money to clear their debts and enjoy lower monthly bills.
The debt crisis has been fuelled by a sharp rise in energy costs. The average bill soared by £277 between January 2006 and January 2007, but price cuts so far this year have amounted to just £84.
full article

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