UK Utility Debt Survey

UK households are facing difficult financial times:

• Over half of the respondents have reached or expect to reach the point in the next 12 months where their regular outgoings exceed their income.
  
  
• For 77% of households, electricity and gas bills are consistently among the three most expensive household bills; water bills come within the top three for only 22%.

Customers are determined to pay their bills on time:

• 75% say it is critical to pay off energy bills and 58% hold that view for water bills.
  
  
• 84% of customers are not currently delaying a water bill, rising to 88% for electricity and 91% for gas bills.
  
  
• However, one in three expects to delay bill payments in the next 12 months.
  
  
• The young (18-34 year-olds) are more likely to delay payments than over-55 year-olds by 40% to 27%).

More households intend to cut consumption back in the next year:

• Over half (53%) of those who delayed energy bill payments in the last 12 months have made efforts to reduce consumption and this will rise to 91% in the next 12 months.

More customers plan to seek better payment arrangements from their utility providers in the coming year:

• In the last 12 months 40% of those delaying payments have called on their utility company to seek a better arrangement and 68% plan to do so in the next 12 months.
  
  
• 74% of those who have delayed some bills in the last 12 months and who called their provider for a payment arrangement are satisfied or very satisfied with their utility supplier’s proposed payment arrangements.

The vast majority of consumers are satisfied with the nature of their bills:

• 75% are satisfied with the frequency, 68% with the detail and 66% with the clarity of their energy bills. Consumers are even more satisfied with the nature of their water bills.
  
  
• Of the few consumers who are dissatisfied/very dissatisfied with their bills frequency, most would prefer more frequent bills to make payment easier (63% for energy, 72% for water).

Utilities have an opportunity to help reduce households’ consumption with new products and services. Of those who want more help from utilities to cut their consumption:

• 65% want help to optimize their consumption.
  
  
• 37% want smart meters, 23% want prepayment devices for water and energy.
  
  
• Smart meters are particularly popular with the ABC1s (42%) and the 18-34 year olds (47%).