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Customers disconnected due to debt drops by more than half

The number of customers disconnected for debt dropped by 65 per cent in 2014 from the number in 2013.

The latest Ofgem figures on domestic suppliers’ obligations reveals that 192 electricity disconnections for debt were carried out in 2014, down from 556 disconnections in 2013.

There were 41 gas disconnections for debt carried out in 2014, down 51 per cent from 84 disconnections in 2013.

The number of energy customers in debt dropped slightly, down to 5 per cent from 6 per cent in 2013, although the average amount of debt increased by 16 per cent for electricity and 18 per cent for gas on the amount owed in 2013.

The average debt in 2014 was £355 for electricity and £382 for gas.

In 2014, around 300,000 new electricity prepayment meters and around 320,000 new gas prepayment meters were installed. 60 per cent of these, 175,000 electricity prepayment and around 195,000 gas prepayment meters were installed to manage debt.

Ofgem said: “Although the number of customer accounts in debt declined in 2014 compared to 2013, average levels of energy debt increased. It is therefore important that suppliers do all they can to treat customers in financial difficulties fairly, and to help customers manage their energy debt and avoid disconnection.”