Tens of thousands of struggling households who owe money to their energy supplier will be freed up to switch to cheaper deals.

Customers who are struggling with their energy bills will find it easier to switch suppliers under new rules. British Gas, EDF, Eon, SSE, Scottish Power and npower will allow their customers on prepayment meters to switch if they have debts of up to £500 - an increase from the current £200 limit. It is one of a number of changes planned by the industry regulator Ofgem to encourage suppliers to work more effectively with households to resolve debt issues and use disconnection as a last resort. There are some 320,000 gas and 315,000 electricity customers with prepayment meters who owe money to their supplier, according to Ofgem, and it is thought tens of thousands will be helped by the move.

In most cases they racked up the debts when they were allowed credit and were slapped with prepayment meters as part of a repayment plan. The increase in the threshold at which customers can switch will be backed by a drive from suppliers to raise awareness of switching and making it easier to switch. Allowing consumers to switch should help them repay their debts more easily. Ofgem is due to report figures next week that will show a 59% fall in the number of people disconnected from their gas supply and a 54% drop in electricity disconnections, partly as a result of...Read more here: New 'Switch And Save' Option On Energy Bills