Finances on a 'knife-edge' as huge rise in households seeking energy bill help
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Citizens Advice came to the rescue of nearly 60,000 households last year, grappling with energy bills – that's one person every two working minutes. The charity highlighted a worrying 20% surge in such cases compared to 2023 and a doubling since 2020. Billing mistakes topped the list of headaches for consumers, according to the advisers at Citizens Advice. With energy prices skyrocketing, the charity is pressing Ofgem to step up safeguarding for customers.
Households have already been hit with a 1.2% bill increase from January 1, and there's a looming 3% rise expected come April. Citizens Advice insists it's "crucial" for suppliers to get billing right, ensuring clear, regular statements that let consumers make informed choices about their energy use and expenses.
Average bills are 66% above the summer 2021 levels, amplifying the impact of any billing errors. As a result, more people are finding themselves in need of help to sort out issues. In response, Citizens Advice is calling for an overhaul of the billing regulations, advocating for a cap on back-billing customers to six months for those with smart meters, a reduction from the current 12-month period. Citizens Advice is calling for more forceful intervention from Ofgem concerning suppliers that don't hit billing standards.
Alex Belsham-Harris, head of energy policy at Citizens Advice, highlighted the urgency: "Day in, day out our advisers support people whose budgets are on a knife-edge. Incorrect charges and large, surprise catch-up bills threaten to push these families into financial crisis.
