**How You Can Save Money on Your Energy Bill as Debts Rise**
As the cost of living continues to strain household budgets, new data from the energy regulator Ofgem reveals that customer debts to energy suppliers have reached an alarming record high of £4.79 billion. This figure represents a 15% increase in total debt and arrears in England, Wales, and Scotland over the past year, highlighting the growing financial pressure many households are facing.
The latest figures, which cover the period from January to March 2026, indicate that many customers are struggling to keep up with their energy bills. The average arrears for those without a repayment plan have reached £1,876 for electricity and £1,623 for gas, significantly higher than the amounts owed by those who have established repayment agreements.
In light of rising energy prices, which are expected to increase for millions of households in July due to escalating gas costs, experts suggest several strategies to help consumers reduce their energy bills and manage existing debts.
**Addressing Existing Energy Debt**
One of the first steps for consumers is to tackle any existing energy debt. Energy suppliers may offer various forms of relief for customers who communicate their financial difficulties. Options may include writing off some debt, establishing payment plans, or providing assistance with essential appliances like fridges and washing machines. It is crucial for customers to reach out to their suppliers to explore available support measures.
**Considering Fixed Tariffs**
For those looking to stabilize their energy costs, fixed tariffs may be an appealing option. Approximately 22 million people, or about 40% of billpayers, are currently on fixed tariffs, which lock in the cost per unit of energy for a specified term, typically one year. While these deals can provide certainty in budgeting, consumers should be cautious; if energy prices were to drop significantly due to international market changes, those on fixed tariffs might miss out on potential savings.
**Payment Methods and Frequency**
Another way to save on energy bills is by reviewing payment methods. According to Ofgem, customers who receive quarterly bills typically pay about £140 more per year compared to those who opt for monthly direct debits. Despite the convenience of quarterly billing, transitioning to monthly payments can lead to substantial savings over time.
**Energy Efficiency Measures**
With the record-breaking heatwave experienced recently, now is an opportune time for households to reassess their energy usage habits. Experts recommend taking proactive measures to improve energy efficiency, such as sealing draughts, adjusting cooking practices, and bleeding radiators. Simple changes, like reducing shower times, can also contribute to lower energy consumption. Tools like egg timers or four-minute songs can help individuals monitor their shower durations effectively.
**Exploring Financial Assistance**
In addition to the strategies mentioned, individuals should check their eligibility for various financial assistance programs. Millions of pounds in benefits remain unclaimed, particularly pension credits, which can provide essential financial support for older adults and serve as a gateway to additional benefits. Local councils may also offer grants for energy efficiency improvements, with eligibility criteria varying by location and income level. Organizations such as Citizens Advice can provide guidance on available assistance.
As households navigate the challenges posed by rising energy costs and increasing debts, taking proactive steps to manage energy usage and finances can make a significant difference. By addressing existing debts, considering fixed tariffs, adjusting payment methods, implementing energy-saving measures, and exploring available financial assistance, consumers can better position themselves to cope with the ongoing cost of living crisis.