Almost 1.2m customers disconnected from energy supply

Almost 1.2 million customers were disconnected from their energy supply in the first three months of 2023, according to Ofgem figures cited in a September 2023 fuel poverty stock take published by the End Fuel Poverty Coalition¹. The same figures put average household energy debt for homes not on a payment plan at £1,214 on electricity bills and £965 on gas bills¹.

The stock take, which gathers research reports, consultations and announcements from across the summer, also reports that customers on prepayment meters are £1bn in debt on their meters, based on data secured under freedom of information requests by 38 Degrees¹. It says this makes those customers more likely to disconnect as top up amounts are deducted to pay off debts¹. Citizens Advice data cited in the same document found that in the first six months of 2023, 7.8 million people had borrowed money to cover energy bills, and 1.2 million children lived in households that had gone without heating, hot water and electricity¹.

On bills, the stock take states that every unit of energy a customer uses still costs double what it did in winter 2020/21, and that daily standing charges have increased, doubling in the case of electricity¹. It cites Resolution Foundation estimates that for around 7 million households, energy bills will be higher this winter than last¹. Regional variation is also reported, with aspects of the energy bill up to 57% more in some areas than others¹.

"Figures from Ofgem revealed that almost 1.2m customers disconnected from their energy supply in the first three months of 2023"

Support schemes are reported to have underdelivered. The Energy Bills Support Scheme Alternative Fund, intended to give £400 to households supplied indirectly via a landlord, site owner or other intermediary, failed to reach almost four in five of those eligible, according to figures published by Age UK¹. The main scheme recorded 20 million missed payments and 50.6 million unclaimed prepayment meter vouchers, more than £70m in support that did not get through¹.

Why it matters for households

Disconnection is the end point of a debt process, and the figures describe how many households reached it in a single quarter. For a home's energy independence, the practical effect is a loss of control over when and whether power and gas are available at all, and a shift towards prepayment, where credit is bought in advance and outstanding debt is recovered from each top up¹. The stock take reports that Ofgem has yet to publish a final decision on its prepayment meter consultation or confirm when forced transfers to prepayment meters will restart¹. It also reports record numbers of smart meters being switched to prepayment mode¹.

The debt figures matter because they sit alongside the standing charge and unit cost changes. Where standing charges rise, a household pays more before using any energy, which reduces the benefit of cutting consumption. The coalition's analysis of standing charges and regional variation indicates that the same notional bill can differ substantially by payment method and by area¹. The unclaimed voucher and missed payment figures show that even support that was funded did not always reach the meter or the bank account¹.

What happens next

Ofgem is still to publish a final decision on the prepayment meter consultation and to confirm when forced transfers to prepayment meters will restart¹. Ofgem has confirmed that suppliers' profits will increase by £2 per customer per year from October¹. The Windfall Tax is set to expire in March 2028, though the stock take notes industry moves that could see a "price floor trigger" ending the tax prematurely¹. The Met Office has confirmed this winter is likely to be an El Nino winter, meaning it is likely to be colder and drier than usual¹.

Sources1 cited

1. September 2023 Fuel Poverty Stock Take, endfuelpoverty.org.uk