As Lockdown 3 begins the number of customers owing money to energy suppliers hits highest level since 2015

Here we go again

Despite the first two lockdowns not working and even with two new vaccines being rolled out the UK government has decided to plunge us all back into lockdown.

Under the rules, people have been told to work from home where able, all 'non-essential' businesses are closed, and uncertainty for countless businesses and people has been increased yet again.

The new lockdown looks set to add to the already soaring numbers of families struggling to pay their energy bills.

According to data requested by Energyhelpline from Ofgem, the total number of customers owing money to their energy suppliers has hit the highest level since 2015.

From July to September last year 777,000 customers owed their supplier money, and for every quarter of 2020, the number of households in debt climbed when compared to 2019.  

Also read: Total number of Energy Bill payers in arrears climbs over 2 million, and Energy Suppliers criticised for poor customer service

Perfect storm

Experts are warning that struggling customers face a 'perfect storm' as wholesale energy prices have increased by 8%, more people are forced to use more power due to having to work from home and a growing impact on family finances.

In particular, business owners have been hardest hit with countless small business being forced to shutter due to the lockdown measures.

Wholesale energy prices have been steadily increasing since last spring when they were at record lows. With the rise in wholesale prices, even the cheapest energy tariffs have increased in cost or £63 per year. The average cost has gone up from £758 to £821 a year.

Also read: Ministers urged to do more as requests for energy bill assistance soar

Rising energy price cap

Adding to consumer woes is the prediction that Ofgem will choose to increase the energy price cap when it comes up for renewal. Any increase will result in higher energy bills for millions of consumers and will only add to the number struggling to pay their suppliers.

"It's vital that energy suppliers and Ofgem do all they can to support consumers who are struggling to pay spiralling energy bills. Not only are consumers facing higher bills as a result of having to use more energy at home, but the pandemic is leading to the prospect of more expensive energy," said Tom Lyon of Energyhelpline.

Also read: Will Covid-19 pandemic lead to an energy price cap rise next year? Ofgem opens consultation

Further Reading

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