British Gas, OVO, EDF, EON, Octopus customers who have £128 energy credit warned
FIVE MILLION British Gas, OVO, EDF, EON and Octopus customers have been warned they have "no buffer" against rising bills. More than five million low-income households have no energy credit just as they move into the more expensive winter months, according to an annual survey.
One in 10 homes (11%) with a household income of less than £20,000 a year already owe money to their energy supplier ahead of winter, with those in debt owing £163 on average, the study by Uswitch found. The survey found a more positive picture nationwide, with just 8% of households – or 2.4 million – in debt on their energy account going into winter, down from more than 11% or 3.2 million last year.
The average household’s energy debt is down 17% from last year’s £216 to £179, although the average account balance is £128 – the lowest level in three years. Almost three-fifths of UK households (59%) have a credit balance, with the average pot standing at £220 – down slightly from £236 last autumn.
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Richard Neudegg, director of regulation at Uswitch, said: “Households use more energy over the winter, so for the majority paying via direct debit it’s ideal to have a cushion of about two months’ worth of energy credit at this point in the year. It’s worrying that five million of the lowest-income households are going into winter with no buffer against higher bills.
“If your energy account is going into debt or you are behind on your bill payments, speak to your supplier as soon as possible.” Overall, nine million households have no energy credit going into winter, a slight reduction from last year.
Despite improvements for many, a third of those in debt (32 per cent) report higher arrears than last year. One in 10 households (12 per cent) have moved from credit to debt. Nationally, two-fifths of households (43 per cent) express more concern about paying their energy bills this year compared to last year.