Powergen are going to raise the cost of gas and electricity plunging more people in the UK into debt. However, the group are just the latest energy provider to hike the cost of supply.
A recent Ofgem review found that the number of people turning to Citizens Advice regarding their energy bills is up a third, adding to concerns that this is set to be the major debt factor for 2008.
Energywatch director Adam Scorer commented, "Average bills have breached the £1,000 a year barrier. Higher energy bills in a period of economic downturn are breaking the bank for tens of thousands more consumers who have probably never been in debt to their suppliers before."
If you're struggling to pay your energy bills then get in contact with your suppliers immediately. Also be sure to compare all of the energy companies rates to ensure you're on the most suitable deal. Switching providers can sometimes be a hassle, but it's worth in the long run to keep you away from serious debt.