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Respite for energy users as debt threshold increases

17/10/2012

Energy users across the UK can breathe a sigh of relief as they will soon be able to carry over a higher rate of debt when switching providers.

Ofgem has announced that prepayment consumers will be able to move to a more suitable energy deal with debt of up to £500 owed to their current provider from November 1st, up from £200 at present.

The country's six main energy companies have agreed to the changes, meaning households will be able to switch more easily between British Gas, EDF, Eon, Scottish Power, NPower and SSE.

Ofgem has also put forward proposals to increase awareness of the switching rights of gas and electricity users in debt to their suppliers.

Senior Partner of Sustainable Development at the authority Sarah Harrison said: "We are pleased to announce a commitment from major suppliers which will permit tens of thousands more repayment meter consumers in debt to choose the cheapest energy deal."

Figures from Ofgem revealed that average electricity debt has fallen £3 to £357 in two years, while typical gas debt has risen £32 to £371 over the same period.