Exclusive: Citizens Advice warns suppliers against chasing customers for debts they can’t pay
Citizens Advice has urged suppliers not to chase customers for debts they cannot afford – with household energy bills expected to climb to painful new heights this winter.
Gillian Cooper, head of energy policy at Citizens Advice, urged the Government and energy firms to do more to help customers.
She told City PM: “The government must act again and provide more financial support so people can cope with spiralling costs. We’d also urge energy companies to do everything they can to help customers and not chase them for debts they can’t pay.”
The policy chief also warned customers against not paying their energy bills, as this could worsen financial issues and lead to enforcement action from suppliers.
Cooper revealed that the charity hears from people every single day facing desperate choices because they’re struggling to afford their energy usage.
She said: “Many are simply running out of options. But it’s important to know that there can be serious consequences if you build up arrears. Your energy supplier can move you onto a prepayment meter or, in rare cases, even disconnect you.”
Citizens Advice’s comments follow the emergence of grassroots campaign, Don’t Pay UK, which is calling on households to refuse to pay their bills this winter.
The movement has been triggered by forecasts of eye-watering energy bills this winter, which could reach £4,000 per year according to the latest forecasts.
So far, nearly 100,000 people have signed up to their movement, with a strike planned on 1 October.
It is now targeting one million signatures.
Citizens Advice described the campaign as “yet another indicator of the pressures people are under.”
However, comparison specialist USwitch also cautioned against refusing to pay energy bills.
Richard Neudegg, director of regulation said: “You should not stop paying your energy bills without engaging with your supplier, as it can lead to debt that can spiral quickly. This could also impact your credit rating, which may have consequences on your future financial choices.”
Last week, Ofgem boss Jonathan Brearley warned that civil disobedience would drive up energy bills for everyone, while worsening the financial situation of people refusing to pay.
He told the BBC: “I would not encourage anyone to withhold their paying their bill because that just damages things further and it will impact them personally.’
Don’t Pay UK has been approached for comment.