13/05/2011
In the past four years the number of people in debt to their energy provider has nearly tripled, a charity has warned.
Since 2007, the number of consumers contacting the Money Advice Trust for advice over fuel debts has soared by 181%.
The charity, which runs National Debtline, said that in the last 12 months it has seen a 10% increase in the level of people unable to keep a handle on their utility bills.
This has made the area one of the fastest growing problems it dealt with.
Reasons for the worsening situation can be attributed to the energy price hike experienced over the past couple of years, as well as higher taxes and rising living costs putting further pressure on people's finances, which are also suffering from a lack of wage growth.
The group warned that people should treat fuel debt as a so-called priority debt, and put money towards clearing it before they worried about other debts, such as unsecured borrowing, or they risked having their energy supply cut off.
Joanna Elson, chief executive of the Money Advice Trust, said: "Fuel debts have now become a major part of our debt landscape and are one of the fastest growing problems we have witnessed at National Debtline.
"We have been working closely with several energy companies who have been keen to engage in the best ways to help their customers get back to a more healthy financial position.
"People also need the best information on how to deal with arrears for gas or electricity. Fuel debts should be treated as a priority debt as gas and electricity companies are free to cut off your supply within a few weeks if you don't pay them."
