British household energy debt reaches £6 billion, EnergyUK says
EnergyUK said unpaid household energy debt stood at £6 billion at the end of June 2026 and could rise to £7 billion by year-end without intervention.
London, United Kingdom. British households owed £6 billion ($8.18 billion) in unpaid energy debt and arrears at the end of June 2026, industry group EnergyUK said.
London, United Kingdom. The group said the debt could reach £7 billion by the end of the year without intervention, as Ofgem is expected to announce a 4 per cent increase in its domestic price cap.
Price cap increase expected
Ofgem is expected to announce this week that its domestic price cap will rise by 4 per cent to a three-year high.
The cap is set quarterly using a formula that reflects wholesale energy prices, suppliers’ network costs, and environmental and social levies.
Wholesale energy prices have risen this year due to the Iran war and are the largest single factor affecting the price cap.
Cost shared across bills
EnergyUK presented the updated debt figure during a call with journalists ahead of the price cap announcement.
Unrecovered energy debt is spread across all consumer bills and currently adds about £50 a year, or around 3 per cent, to a typical annual bill.
Support scheme stalled
Ofgem has been considering options to help consumers in debt.
A proposed scheme to clear £500 million of debt for the poorest customers has stalled because it requires government legislation.
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