Household energy debt in Britain has risen to £6 billion as of the end of June, according to data released by industry group EnergyUK ahead of a scheduled announcement by regulator Ofgem on the domestic price cap.
The total reflects outstanding payments and arrears accumulated by consumers, with the figure expected to climb further if Ofgem proceeds with a 4% increase to the price cap later this week. The regulator sets the cap quarterly, factoring in wholesale energy costs, suppliers' network expenses, and environmental and social levies.
Wholesale energy prices have climbed this year amid geopolitical tensions linked to the Iran conflict, contributing to higher household bills. EnergyUK noted that the current unpaid debt adds roughly £50 annually to the average consumer's energy bill, equivalent to about 3% of the typical annual cost. Without government or regulatory intervention, the industry group estimates the debt could reach £7 billion by the end of the year.
A separate proposal to clear £500 million in debt for the poorest customers remains stalled, requiring legislative approval that has not yet been secured. The timing of Ofgem's announcement follows a call with journalists, where EnergyUK highlighted the growing financial strain on households amid rising energy costs.
