Level of energy debt is on the rise – MoneyWeek

Theaverageenergybillisnow£1,252,£183morethanaroundthesametimein2011,signallinganotherincreaseindebtlevelsnextyear。

Ofthoseindebttoanenergycompany,just13%owelessthantheydidthistimelastyear,while35%owemore。

Therisescomedespiteenergyproviderstakingstepstoreduceenergybillsby£41or3。

2%。

AnnRobinson,DirectorofConsumerPolicyatuSwitch,says:Withhouseholdsstillstrugglingtoabsorblastyearspricehikes,energydebtisontheriseagain。

Althoughsuppliershavecuttheirpricesthisyear,theaveragereductionof£41or3。

2%doesntcomeneartheaverageincreaseof£224or21%seensincetheendof2010asaresultconsumerswillcontinuetostruggletopaytheirbillsanddebtwillcontinuetogrow。

Thoseinenergydebtcanfaceacatch-22。

Despiteknowingtheycouldreducetheirbillsbymovingtoacheaperenergyplan,consumerscanseedebtasabarriertoswitching。

Closetoonein10peoplewhoareindebtareagreeingtoarepaymentplan,21%wanttopayofftheirdebtwithalumpsum,while3%areexpectingtomoveontoapayasyougometer。

NR

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