This week's personal finance news
News
26/07/2010 18:34:51
Financial planning 'threatened by energy debt'
Financial planning is at risk from widespread energy debt, according to a fuel comparison website.
Personal savings could be affected, as a recent report from uSwitch.com found almost two million gas and electricity customers are repaying accumulated unpaid bills.
Similarly, the organisation revealed the number of people indebted because of their fuel usage increased by almost 19 per cent, with the average amount owed in arrears rising by between £20 and £80 in February this year.
A recent report by Ofgem urged energy suppliers to consider the impact of the recession on consumer ability to meet financial obligations, saying measures should be put in place to avoid buyers falling into fuel debt.
Ann Robinson, director of consumer policy at uSwitch.com, says the statistics are not a true reflection of the size of the policy, arguing the data is a sign of "a far bigger malaise".
"Rocketing" household fuel expenses in 2008 - up 48 per cent to £381 for the average household - will not be reversed, she claims, stating "the only way is up" for energy bills.
