British households owe £6 billion ($8.18 billion) in unpaid energy debt and arrears, industry group EnergyUK has reported.
Regulator Ofgem is expected to announce this week a 4 per cent increase in its domestic price cap, taking it to a three-year high.
EnergyUK presented the updated debt figure in a call with journalists ahead of the price cap announcement and said the data represented debt at the end of June 2026.
Unrecovered energy debt is spread across all consumer bills and currently adds around £50 a year or around 3 per cent to a typical annual bill.
EnergyUK said the debt figure is likely to reach £7 billion by the end of the year without intervention.
Regulator Ofgem has been looking at options to help indebted consumers but a scheme to clear £500 million of debt for the poorest customers, which needs government legislation, has stalled.
Wholesale energy prices, which have soared this year due to the Iran war, are the largest single factor contributing to the domestic price cap, which is set on a quarterly basis using a formula that also reflects suppliers’ network costs and environmental and social levies.
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