20% Increase in People Seeking Help with Energy Bills Last Year
20% Increase in People Seeking Help with Energy Bills Last Year.
Citizens Advice reported that it provided support to 60,000 households in England and Wales regarding gas and electricity expenses in 2024.
The number of individuals in England and Wales who sought assistance with energy bills increased by 20% last year, as reported by Citizens Advice, which provided support to 60,000 households facing challenges due to the rising costs of gas and electricity.
This figure is double that of 2020, according to the national consumer advice charity, which noted that billing issues were the most frequently reported problems by its service users.
While such issues are not unprecedented, their impact has intensified as energy prices have escalated in recent years. Last year, a quarter of the billing problems reported involved catch-up bills, which averaged £2,500.
Ofgem, the energy regulator for Great Britain, establishes a quarterly limit on the charges suppliers can impose for gas and electricity. On January 1st, the price cap increased by 1.2%, raising the average energy bill for millions of households to £1,738 annually. A further increase of 3% is anticipated in April.
The current cap is nearly £600 higher than the amount at the beginning of 2022, prior to Russia's invasion of Ukraine, which significantly contributed to the surge in energy prices.
Cold weather warnings have been announced throughout the UK, coinciding with the lowest January temperatures recorded in 15 years. This situation has heightened the demand for heating and intensified scrutiny on the government regarding its contentious choice to eliminate winter fuel payments for all but the most financially disadvantaged pensioners.
In light of the financial strain on consumers, Citizens Advice emphasized the importance of energy companies delivering accurate and comprehensible bills on a regular basis. The charity has called on Ofgem to reduce the back-billing period for customers with smart meters from the current 12 months to six months, in order to prevent substantial unexpected charges.
“Consumers simply can’t afford to pick up the tab when something goes wrong, and the onus shouldn’t be on them to make up for companies’ billing errors,” said Alex Belsham-Harris, the head of energy policy at Citizens Advice.
“Day in, day out our advisers support people whose budgets are on a knife-edge. Incorrect charges and large, surprise catchup bills threaten to push these families into financial crisis,” he added.
A spokesperson for Ofgem said: “Customers should not be spending hours rectifying incorrect bills or worrying about demands for money they don’t owe.
“It is a supplier’s responsibility to fix billing issues quickly and handle complaints effectively, and we have secured millions of pounds in redress and compensation where they have failed to do this.
“Last year we announced our intention to review the rules around billing accuracy and supplier billing practices, including back-billing rules, as part of our consumer confidence programme.
“We have also set out proposals to reset the debt, and reform the system so customers receive a higher standard of support from their supplier when they are struggling.”
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The growing number of people seeking help with energy bills highlights the severe financial strain caused by escalating energy prices. With the average energy bill rising to nearly £1,738 and expected to increase further, many households are left grappling with unexpected and large back-bills.
The situation is exacerbated by inaccurate billing practices and the government’s decision to eliminate winter fuel payments for most pensioners. As more families face financial crises due to energy costs, urgent action is needed from energy suppliers and regulators to ensure fair billing practices and provide more support for struggling consumers.
