Millions of households will be paying their energy companies more than they were at the height of the cost of living crisis, as they start to repay huge levels of debt built up because of recent sky-high energy prices according to fuel poverty charity National Energy Action.

National Energy Action Chief Executive Adam Scorer says, “Any decrease in prices is to be welcomed.”
The price cap fell by 12% on Monday 1 April.

“But households are not just paying for their current usage – millions are still paying for last winter too,” he adds. “The lasting impacts of price shocks are yet to be dealt with.”

Ofgem states there are currently 2.3 million households owing over £1,200 on average amounting to over £3 billion in total energy debt.

Adam continues, “Two years of household budgets being whittled down to nothing, and an ever-expanding ocean of debt that the poorest are expected to pay off, simply isn’t sustainable and is leading people to desperate measures like going without clean clothes, without warm food and heating.”

Households remain in crisis over energy bills

National Energy Action commissioned YouGov to conduct a poll, the results of which were released at the end of March, that found 34% of adults had found it difficult to pay their energy bills over the past three months.

The polling uncovered, that between December to February:

• 59% of adults polled said they had rationed their heating, turning their thermostat down lower than they wanted. 16% say they had done so every day, with those in debt to their energy supplier more than twice as likely to say this than those in credit.
• 49% of the adults said they had gone to bed to stay warm with 19% saying that they had done so most days. Those in debt to their energy supplier were more than three times as likely to say this than those in credit.
• 15% of the adults said they had used an improvised heater at home. Those in debt to their energy supplier were more than twice times as likely to say this than those in credit.

In light of high debts, National Energy Action is calling for a social tariff, energy debt repayment schemes and investment in energy efficiency schemes to keep bill costs down.

“The energy crisis is not over, especially for the poorest, who remain exposed to the greatest jeopardy. There are levers this government and the next can pull to help those in fuel poverty now and ending it in the long-term – this crisis cannot be the new normal,” concludes Adam.