uSwitch has conducted a study which reveals that almost four million households now owe their energy provider an average of £128 totalling to about £464million following last winter’s price hike.
With the average household energy bill £53 higher when compared to last year, almost 33per cent in debt owe more than they did a year ago. Although 20per cent in debt plan to pay off their debt with a lump sum, one in ten prefer repayment plans with their energy supplier.
Ann Robinson at uSwitch.com said: "Millions of households are in debt to energy suppliers and the amount they each owe has risen. This is a clear indication of the extreme pressure families are under to meet the rising cost of energy.”
Currently, the average household energy bill is £1,265.
As the competition intensifies, experts are urging customers to switch providers to save on their energy bills.
However, debt-ridden existing contracts may be a reason for not taking the step.
Robison explained: "Despite knowing they could reduce their bills by moving to a cheaper energy plan, many see debt as a barrier to switching. With a difference of over £300 between the cheapest and most expensive tariff on the market, consumers cannot afford to have this avenue closed to them."