Consumers' debts to energy suppliers 'average £132'

Energy consumers in debt to their suppliers now owe an average £132 - 5% more than last year, according to a study.

However, the poll for comparison website uSwitch.com found the number of UK households owing money has dropped from 6.5 million last year to 5.5 million - or 21%.

Of those in debt, 41% now owe more than they did this time last year while 17% said they owed less.

The figures follow recent gas price cut announcements across the industry amid falling wholesale prices.

But consumer groups and uSwitch criticised the sector for not moving faster to cut prices in the face of a bitterly cold winter.

USwitch said household energy bills rocketed by 42% or £381 in 2008 but fell by just 4% or £54 in 2009. Price cuts so far this year had averaged out at 4% or £45.

The average household bill will be £1,209 a year once the cuts come into effect - £297 or 33% higher than at the beginning of 2008, uSwitch said.

Ann Robinson, director of consumer policy at uSwitch, said: "The fact remains that consumers have been left facing bills that are £297 or 33% higher than at the beginning of 2008.

"This has clearly taken its toll with the average amount owed on energy bills increasing by 16% since 2008, yet again raising serious concerns about the affordability of energy in this country.

"The increase in energy debt this year is symptomatic of the fact that we are entering an era of high cost energy. Households will have to adapt if they are to protect themselves from spiralling energy bills."

Consumer Focus energy expert Audrey Gallacher said: "Millions of the poorest customers will be struggling to make ends meet and it is therefore very worrying, but not surprising, that energy debt is increasing.

"Customers are facing a triple whammy - the effects of a recession, the coldest weather for decades and high energy prices. Massive winter bills now dropping through people's doors will be causing them sleepless nights over which essentials they will have to cut back on.

"We have been reviewing energy suppliers' debt policies as it is crucial that they are managing customer accounts properly, particularly given the difficult economic climate. It is vital that energy companies take steps to understand their customers' personal circumstances, and treat them fairly when agreeing debt repayment plans."