The surge in households seeking aid for unpaid energy bills leading to court actions has doubled in the past year, as noted by Citizens Advice. Suppliers are increasingly resorting to legal measures to recoup energy debts, potentially causing long-term financial strain for households. This trend seems to have intensified following Ofgem's imposition of stringent restrictions on mandatory prepayment meter installations.
Last year, Citizens Advice provided guidance to 349 households facing County Court Judgments (CCJs) due to overdue gas and electricity bills, compared to 179 in 2022, coinciding with a record-high energy debt of £3.1 billion. The CCJs reported are the highest since 2019, likely representing only a fraction of the total judgments issued for energy debt recovery. Despite Ofgem's recent reduction of the energy price cap to £1,690 annually for typical dual fuel bills, data shows that energy debt continued to climb by £2.8 million daily in the latter half of last year, -So what can be done to reduce those energy costs?
