Total Ofgem reported debt is now at ~£3bn for Q3-2023

Total Ofgem reported debt is now at ~£3bn for Q3-2023, 50% (~£1bn) higher than Q3-2022.

The primary driver is an £800m increase from accounts with No Arrangement in place to repay their debt.

• We see a 20% (300k) increase in account numbers, which means more than 1.8m accounts are in debt without an arrangement.
• A 40% increase in balances per account to > £1,100.

As Ofgem reports this on an accounts basis, this means almost 1m households owe an average of £2,200 and have no arrangement in place to repay the debt with their supplier.

Debt on accounts with an arrangement to repay has increased by ~13% (£100m).

• There’s a ~18% (300k) reduction in accounts in debt with an arrangement to repay their debt – which could mean 300k customers had an arrangement but have not been able to maintain it.
• Average balances for accounts in an arrangement have increased by 35% to >£550 (increase of £150), which means the average dual fuel customer in debt with an arrangement owes > £1,100.

For more information on customer debt in energy, contact Ian Barker or Matt Turner.

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