The coldest winter for 30 years has meant that many homeowners now face the increased risk of developing debt problems, as their heating bills have soared by around 20 per cent.
Gas bills soar causing debt problems for many
Despite wholesale drops in the price of gas, many energy companies have not passed on these savings to customers and have instead raised prices to drive profits up.
Recent freezing temperatures are estimated to have caused a 30 per cent surge in energy consumption, so when coupled with these price increases it means further misery for troubled households.
For people trying to stay warm throughout the chilly period, it means gas bills could be much higher than anticipated, placing further strain on already overstretched household budgets – which for some consumers they simply cannot afford to pay.
According to a study by the Daily Express newspaper, the average household’s annual bills have increased by 127 per cent since 2003 – up to £1,233 from an average £543.
Richard Hall, energy specialist at watchdog Consumer Focus, said: “Suppliers have failed to fully pass on wholesale price cuts and have boosted their profits by not reducing prices before customers turn up their heating in the cold winter.
“All of the suppliers will be enjoying rocketing profits while millions of consumers worry about how to afford to keep warm.”
Ivan Cooper, Chairman at debt advice experts Chiltern, said: “Even though the wholesale price of gas has dropped during the last couple of years, energy companies are placing huge strain on the debt management of many of their customers.
“For many, the household budget simply cannot cope and the threat of developing debt problems increases – as overdrafts, loans and credit card debts are used to pay bills.
“When normal household expenses like these are being paid with credit facilities, it’s time to seek impartial debt help – before debt problems get any worse.”
Office of National Statistics figures showed that the elderly are most at risk, as there were 36,700 more deaths in the winter period compared to warmer months.
