Three Million UK Households Owe More as Energy Debt Deepens
(Bloomberg) -- Nearly three million UK households owe more money to their power and natural gas suppliers, stoking concerns of a growing energy wealth divide with bills set to increase into winter.
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While the proportion of those in energy debt has dropped to about a tenth from last autumn, the amount owed has increased 19% to about £190 ($226) each on average, according to utility price comparison site USwitch.com. By contrast, the two-thirds of households that are in credit saw their balances increase from a year ago.
The growing division comes as the government’s Energy Price Guarantee, a temporary freeze on energy unit prices, is set to end in April 2023. Britain’s Chancellor of the Exchequer has indicated that there will be more targeted support for vulnerable households.
“A gulf is growing between the UK’s energy haves and have-nots, with energy credit soaring for some as debt swells for others,” said Richard Neudegg, director of regulation at Uswitch.com. “If bills rise again in April, this will create a perilous situation for many people.”
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