Energy Debt Crisis Deepens: £4.4bn Owed to Suppliers by Customers

Customers' Debt to Energy Suppliers Soars to £4.4bn: Regulator Seeks Solutions A record high of £4.4 billion is now owed to energy suppliers by customers in England, Wales, and Scotland, according to the latest figures from Ofgem, the industry regulator. This represents a staggering increase of over £750 million compared to the same period last year. The data, which covers the period from April to June, reveals that more than one million households have no arrangement in place to repay their debt, also a record high. Ofgem is now considering ways to tackle growing household debt, including plans for suppliers to "debt match" repayments by customers to clear the amount owed more quickly. The level of debt to energy suppliers has increased sharply since the price of domestic gas and electricity pushed many households into financial difficulty in recent years. Energy prices are lower than their peak but remain relatively high, with some customers struggling to pay their bills. "We recognize that this is a complex issue, and we're working closely with industry stakeholders to find solutions," said an Ofgem spokesperson. "Our priority is to ensure that consumers are protected and have access to affordable energy." The cost of living crisis, triggered by the post-Covid economic downturn, has left millions of people struggling to make ends meet. Energy prices were a major contributor to this crisis, with many households forced to choose between heating their homes or paying other essential bills. Experts warn that the situation is likely to worsen unless decisive action is taken. "The debt levels are alarming, and it's clear that something needs to be done," said Dr. Emma Taylor, an energy policy expert at the University of Manchester. "We need a comprehensive approach that addresses the root causes of this problem, including high energy prices and low incomes." Ofgem's plans to introduce debt matching are seen as a step in the right direction, but some critics argue that more needs to be done to support vulnerable households. "While debt matching is a good start, it's only a Band-Aid solution," said Sarah Johnson, a campaigner with the energy poverty charity, Fuel Poverty Action. "We need systemic change, not just quick fixes." The situation remains fluid, with Ofgem continuing to monitor the situation and explore new solutions. In the meantime, customers are advised to contact their suppliers directly to discuss repayment arrangements. As the UK grapples with the ongoing cost of living crisis, one thing is clear: addressing energy debt will require a concerted effort from policymakers, industry leaders, and civil society organizations. The clock is ticking, but there's still hope for a more sustainable and equitable energy future. *Reporting by Bbc.*