Rising Demand for Energy Bill Support: 60,000 Households Assisted in 2024
Citizens Advice reports a 20% increase in the number of people seeking help with energy bills in England and Wales last year. The organisation supported 60,000 households struggling with the soaring costs of gas and electricity, a figure that has doubled since 2020.
Key Issues
Billing problems were the most common concern raised, with 25% of cases involving catch-up bills averaging £2,500. While billing issues aren’t new, the sharp rise in energy prices has significantly heightened their impact.
Energy bills remain a critical concern, with Ofgem’s price cap increasing by 1.2% on 1 January, bringing the average annual bill to £1,738. A further 3% rise is expected in April. The current cap is nearly £600 higher than at the start of 2022, following the surge in energy prices driven by Russia’s invasion of Ukraine.
The Cost of Cold Weather
With the UK experiencing its coldest January in 15 years, demand for heating has spiked, adding to household pressures. The government’s decision to restrict winter fuel payments to only the poorest pensioners has drawn significant criticism, further straining vulnerable households.
Calls for Change
Citizens Advice has emphasised the need for energy companies to provide accurate and transparent bills to help consumers manage their costs. The charity has urged Ofgem to reduce the back-billing limit for smart meter users from 12 months to 6 months to prevent large, unexpected payments.
“Consumers simply can’t afford to pick up the tab when something goes wrong, and the onus shouldn’t be on them to fix companies’ billing errors,” said Alex Belsham-Harris, head of energy policy at Citizens Advice.
Ofgem’s Response
A spokesperson for Ofgem reiterated the importance of addressing billing issues promptly, stating:
“Customers should not spend hours rectifying incorrect bills or worrying about demands for money they don’t owe. Suppliers must fix issues quickly and effectively.”
In 2024, Ofgem announced a review of billing practices and back-billing rules as part of its consumer confidence programme, alongside proposals to reform debt support systems. These initiatives aim to ensure better protections and higher standards of support for struggling customers.
Looking Ahead
With energy prices expected to remain high and winter driving up heating demands, Citizens Advice continues to play a vital role in supporting households. The charity’s call for reforms underscores the urgent need to shield vulnerable families from the financial strain of rising bills and billing errors.