Essex charity welcomes energy price cap as many clients in debt

A charity in Essex says a large number of their clients are in debt due to high energy bills.

Around 10 million households in the UK are being advised to send their energy meter readings to their supplier this weekend to ensure they do not overpay when cheaper prices come into effect on April 1.

The average household energy bill is to fall to its lowest point in two years from next month after Ofgem lowered its price cap in response to wholesale prices.

Rachael Phillips, Christians Against Poverty's Basildon Debt Centre Manager, says reduced bills will make a huge difference as many of their clients are in debt with their energy companies.

She said: “Energy prices are an enormous problem for our clients. The idea of sending in the meter reading won't affect most of our clients, because most of them are on pre-payment meters. Because of the high energy bills, they've got into debt, so pre-payment meters are what most of our clients use so that they're paying what they use plus a small amount paying back on their debts.”

Ms Phillips continued: “Having said that, for people who are paying direct debit to their energy companies, it would be worth sending in the reading simply because that would then mean they would get lower prices the minute the lower prices come in.

“Reduced bills are going to make a big difference, as it can mean being able to put their heating on. I've just been to see an elderly lady in her 70s who can't afford to turn the heating on. She was sat in two or three woolly jumpers, a hat and stockings – and the house was very cold.

“But as I said, most of our clients are not in that position because they've not been able to pay their bills and therefore have been forced into pre-payment meters. They can't change energy providers because they've got debt with those energy.”