Utilities bills continue to pinch

As Britain emerges from one of the coldest winters in recent history, tens of thousands of families are set to struggle to pay the massive gas bills that drop through their letterboxes at the end of the quarter.

And, while many consumers are able to benefit from shopping around for the best deal on their lighting and heating and switching utilities suppliers where appropriate, a significant proportion will still find themselves with money worries even when they've signed up to the cheapest deal on the market.

According to Ofgem, the third quarter of 2009 saw a 13 per cent increase in the number of electricity customers entering into a new debt arrangement with their supplier as they struggle to meet their commitments.

What's more, the same period also saw a 21 per cent increase in the number of UK households looking to make such arrangements with their gas suppliers.

Notably, the energy industry watchdog has also revealed that the degree to which utilities bills are pushing people into the red has increased over recent months, noting that there has been a "substantial" rise in the number of people with energy debts of at least £600.

Sadly, while consumers are becoming more savvy and opting to take proactive measures to reduce their outgoings, such as improving the energy-efficiency of their homes or switching utilities suppliers, National Energy Action (NEA) has warned that, with years of cheap energy now consigned to history, many more families and individuals are likely to start sliding into debt as bills rise.

Lesley Tudor-Snodin, spokesperson for NEA, explained: "We have recently begun working with school children to try and encourage energy efficiency from a young age, but after years of relatively cheap energy there are several generations of people who will struggle to make these changes as they are just not used to it."

On the plus side, she added that energy prices have remained "relatively stable" over the past 12 months and are even around three to five per cent lower than they were this time last year, thanks largely to "an online price war between suppliers keeping costs competitive in the market".

But such statistics are likely to be of little comfort to many people, with Which? having recently reported that around four in ten households are dreading receiving their next gas bill after cranking up the heating over the cold spell.