20% increase in people seeking help with their energy bills last year.
Citizens Advice said it has provided help to 60,000 households in England and Wales with gas and electricity costs in 2024.
The number of people in England and Wales seeking help to pay their energy bills increased by 20% last year, as reported by Citizens Advice, which has helped 60,000 households facing difficulties due to rising gas and electricity costs.
This figure is double that of 2020, according to the national consumer advice charity, which noted that billing issues were the most common problems reported by users of its services.
While these problems are not unprecedented, their impact has intensified as energy prices have climbed in recent years. Last year, a quarter of billing issues reported involved catch-up bills, which averaged £2,500.
Ofgem, Britain’s energy regulator, sets a quarterly limit on the prices suppliers can charge for gas and electricity. On January 1, the price cap increased by 1.2%, taking the average energy bill for millions of homes to £1,738 a year. A further increase of 3% is expected in April.
The current cap is almost £600 higher than the amount at the start of 2022, before Russia’s invasion of Ukraine, which contributed significantly to soaring energy prices.
Cold weather warnings have been issued across the UK, coinciding with the lowest January temperatures recorded in 15 years. This has increased demand for heating and intensified scrutiny of the government over its controversial choice to eliminate winter fuel payments for all but the most financially disadvantaged pensioners.
In light of the financial pressure placed on consumers, Citizens Advice has highlighted the importance of energy companies regularly providing accurate and understandable bills. The charity has called on Ofgem to reduce the chargeback period for customers with smart meters from the current 12 months to six months, to avoid large unexpected charges.
“Consumers simply can’t afford to foot the bill if something goes wrong, and it shouldn’t be up to them to fix companies’ billing mistakes,” said Alex Belsham-Harris, head of energy policy at Citizens Advice. .
“Day after day, our advisors support people whose budgets are tight. Incorrect charges and large, surprise catch-up bills threaten to push these families into financial crisis,” he added.
An Ofgem spokesperson said: “Customers shouldn’t have to spend hours rectifying incorrect invoices or worrying about requests for money they don’t owe.
“It is a supplier’s responsibility to resolve billing issues quickly and deal with 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 rules regarding billing accuracy and provider billing practices, including chargeback rules, as part of our Consumer Trust Program.
“We have also made proposals to reset the debt and reform the system so that customers receive a higher level of support from their provider when they are in difficulty. »
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The growing number of people seeking help with their energy bills highlights the serious financial hardship caused by rising energy prices. With the average energy bill standing at almost £1,738 and expected to rise further, many households are finding themselves saddled with unexpected and large bills.
The situation is exacerbated by inaccurate billing practices and the government’s decision to eliminate winter fuel payments for most retirees. As more families face financial crises due to energy costs, urgent action is needed from energy providers and regulators to ensure fair billing practices and provide more support to consumers in difficulty.