- Friday, 22 January 2010IVA solutions may be needed by a high number of consumers, as energy debt continues to soar.
A new report by Ofgem reveals a 13 per cent increase in the number of electricity customers entering into a new debt repayment arrangement in the third quarter, and a 21 per cent increase in those engaging in similar methods for gas.
The average level of debt is 20 per cent higher year on year, and there was also a reported increase in the number of energy-related debts over £600.
Thomas Lyon, energy expert with price comparison site uSwitch.com, said while the recession would have played a role in the increasing debt levels, higher energy prices were also to blame.
"Energy bills are substantially higher - £327 a year or more - than they were at the beginning of 2008 even after suppliers cut their prices last year," he said.
"This will have had an impact on the ability of many households to afford and pay for their energy."
Mr Lyon said the situation could worsen as the winter went on, possibly adding an extra £60 onto the next quarterly bill as households use extra heating and energy.
Recent estimates from price comparison site moneysupermarket.com indicate people could be hit with a ten per cent increase on their annual energy bill as a result of the "big freeze".
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