UK households are already in debt by £1.3 billion to their energy suppliers before bills are set to rise by more than 80 per cent.
The current amount owed to suppliers is already three times higher than it was a year ago, experts at Uswitch said on Wednesday, and it seems likely that it will grow further over the winter.
A survey from the company shows six million homes across the UK owe an average of £206 to their energy provider, when in April the same average debt was £188.
Normally at this time of year people have built up a amount to help even out the increased bills during winter.
Regulator Ofgem is expected to raise the price cap on energy bills to £3,582 ($4,326) a year for the average household in Great Britain from the start of October, according to a new forecast.
Analysts at Cornwall Insight predicted further rises, to £4,266 in January and then £4,427 from the start of April.
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“Energy debt has hit an all-time high with the worst possible timing, turning this winter’s energy price hike into a deeply precarious situation for many households,” said Justina Miltienyte, head of policy at Uswitch.
“This is an alarming situation, as summer is traditionally a time when households are using less power for heating, which helps bill payers to build up energy credit ahead of the winter.”
The survey showed that eight million households have no credit balances, meaning they have no cushion against the winter misery.
Nearly one in five people (18 per cent) said they were worried about their supplier forcing them to take a pre-payment meter if they fell behind on bills, although 38 per cent said they did not know their supplier could do this.
“If you are behind on your bill payments, or your energy account is going into debt, speak to your provider as soon as possible,” Ms Miltienyte said.
“They should be able to help you find a solution, such as working out a more affordable payment plan. You may also find you are eligible for additional support such as hardship funds and other energy help schemes.
“The government also needs to take energy debt seriously ahead of the winter – and a greater support package for vulnerable households needs to be agreed as a priority.”
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There are several ways for customers to save on bills. One of the simplest is to turn down the flow temperature on your condensing combi boiler.
Doing this will allow the boiler to run more efficiently and could save about £200 on an average energy bill.
Another easy saving is to turn off the pre-heat mode on the boiler, which could mean hot water taps taking longer to heat up, but could save hundreds of pounds a year.
Experts also advise households to check if they are eligible for extra support.
