As Winter approaches three million households are in Energy Bill debt to Energy Suppliers

22% increase in debt on the previous year

Worries over energy bills rising

The report also shows that 9.6 million households have revealed they are concerned about how they will pay their energy bill this winter, with 14% saying that to save money they will not put on their heating even if the weather turns cold.

With many more people working from home as a result of the virus, energy bills are rising already. Now, home workers will have to pay out more to keep warm as well as pay for the extra electricity they are having to use to work remotely.

Some businesses are topping up workers pay packets to help cover these extra costs, but the vast majority are not adding to worries that consumers will not be able to pay their energy bills.

Many households are now faced with a grim choice with the data showing that as many of 1.9 million consumers intend to spend less on food in order to pay for heating and electricity.  

8% of those surveyed said that will try to spend more time out of the house to avoid having to heat their homes, but with Covid restrictions in place, this will not be easy.

“It’s incredibly worrying that so many more homes have found themselves in energy debt as we head towards the coldest time of the year. It’s also alarming that nearly two million households will be forced to choose between heating or eating just to make ends meet. Anyone worried about their debt should contact their energy supplier as soon as possible to set up a repayment plan,” said Sarah Broomfield, Energy Expert at Uswitch.

Energy Suppliers need to do more

The report also highlighted how energy suppliers are failing in some key areas when it comes to supporting their customers.

Over half of the households in debt to their energy supplier said that they had not been contacted by the supplier, just 22% said that had been contacted.

“It’s clear that there’s room for energy companies to do more to make customers aware if they are falling behind on their bills and lay out the options or help available for paying off that debt,” added Broomfield.

Those customers that did receive communications were then either helped setting up a repayment plan or were given advice on how to save energy.

With all the technology at their disposal, energy suppliers need to be more on it when it comes to communication with their customers. Software such as Dyball’s CRM allows suppliers to quickly see which of their customers is in debt and easily allows them to send communications to said customers.

By offering support to its customers, an energy supplier can generate a lot of goodwill which in the long term will be a benefit. Excellent customer service is one of the key reasons why consumers choose an energy supplier in the first place.

The situation may be looking grim, but energy suppliers can ease the stress of their customers by being supportive and helpful. It is those suppliers that go on to thrive in this highly competitive market.

Further Reading

Top Tips to Help your customers save energy this Winter

Struggling Hospitality Sector accuses Energy Suppliers of imposing price hikes and unfair deposits

Covid-19 fallout likely to see consumers needing government help to pay their energy bills this winter warns Ovo Energy chief

Dyball Associates are proud to help new supply businesses successfully launch in the UK market.

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For more information on how to start and manage an energy company, get in touch with Dyball Associates today.