Pre-pay energy debt tops £1 billion

New figures from Debt Justice reveal that pre-pay energy users are being weighed down by over £1 billion of energy debt.

The granting of new warrants to forcefully install pre-pay meters has been suspended but the debt remains hanging over hundreds of thousands of households who already have a pre-pay account.

Pre-pay energy users currently take an average of four and a half years to pay off electricity debt and four years to pay off gas debt. Energy debt repayments are deducted from credit and can force households to go without the energy they need for heating, cooking or operating medical equipment. For pre-pay users, debt repayments speed up disconnection, exposing them to the deadly effects of cold and damp homes.

Junnie Braithwaite, 56, northeast London said:

“I live in a socially rented apartment split over two floors and need to use a stairlift because of fibromyalgia and arthritis. Due to rising energy prices and £600 of energy debt I can no longer afford to operate my stairlift.

“This debt is based on an estimation as I am unable to read my meter. EON hasn’t sent anyone round to read the meter for years and are now pressuring me to go on to pre-pay.

“I have been forced into unpayable debt because of my situation and it has left me feeling suicidal.”

Joe Cox, Senior Policy Officer at Debt Justice said:

“The energy crisis is far from over. The fallout from record energy prices and the huge buildup of debt could impact millions of households for years to come unless the government steps up to tackle the problem.

We need to pause energy debt enforcement, write down the unpayable debt and reform the energy system to ensure everyone has access to the energy they need.”

For more information contact Joe Cox on 07796884487