THREE million households are said to be so financially stretched that an increase in bills could be too difficult to pay.
The findings come from research just two days before the energy price cap rise is expected to be announced by Ofgem this Friday.
Experts are said to expect the price cap to increase due to wholesale energy costs and to allow providers to cope with missed payments caused by the pandemic.
Energy customers are said to already be strained, with households estimating that their power usage is 8% higher than this time last year due to spending more time at home during lockdown.
More than one in ten consumers say they could not cope if household bills were to increase.
The research was conducted online by Opinium, between 26 to 29 January 2021 who spoke to 2,004 adults.
Over a quarter of bill-payers warn they would be forced into debt if their expenses rose by just £10 a month or less.
Customers on Standard Variable Tariffs (SVTs) and prepayment meters are said to be directly affected by an increase in the price cap.
More than half of households on SVTs and prepayment meters are stressed by the thought of the price cap rising and fear they won’t be able to pay all their bills or will have less money to spend on other things[3].
Almost three in ten people on prepayment meters say they regularly worry about paying their household bills, while research says 12% of people on SVTs have the same concern.
Uswitch.com is now encouraging households to switch to a fixed deal to avoid market volatility and reduce their energy bills.
Sarah Broomfield, energy expert at Uswitch.com, comments: “Millions of UK households have suffered financial challenges during the pandemic, and the thought of increased bills is causing many people additional stress.
“The majority of those fearing the additional burden of a rising energy price cap are people on prepayment meters and costly Standard Variable Tariffs.
“If you are on an SVT, we recommend you switch energy tariff to a fixed deal. These are far less costly than SVTs and let you fix the cost of your energy bills for a whole year.
“Anyone who is worried about getting into energy debt should contact their energy supplier as soon as possible to get advice and set up a repayment plan.”
