An industry group has warned that households in Great Britain could owe energy suppliers as much as £7bn by the end of 2026 once higher winter prices take effect, after arrears already hit a record £6bn in June.
Key facts
- Energy UK warns household energy debt could reach £7bn by the end of the year.
- Domestic energy debt and arrears reached a record £6bn at the end of June.
- Debt climbed by about £500m over the past year.
- Higher winter gas and electricity prices are forecast to worsen arrears.
- The Middle East conflict has continued to stoke rising gas market prices.
Households in Great Britain could owe their energy suppliers as much as £7bn by the end of the year, an industry group has warned, as higher gas and electricity prices forecast for the winter begin to take effect.
According to the Guardian, the warning came from Energy UK, which represents the industry. The group said energy debt that has gone unpaid for more than 30 days is likely to rise once the higher winter prices kick in.
Domestic energy debt and arrears have already climbed by about £500m over the past year, reaching a record £6bn at the end of June, the Guardian reported.
The rise in arrears has coincided with increasing pressure on gas market prices. The report attributed part of that pressure to the continuing Middle East conflict, which it said has stoked rising gas prices.
The projected increase to £7bn would represent a further jump from the current record level, underscoring the growing financial strain on households as colder weather approaches and heating demand rises.
Why it matters
Rising energy debt signals mounting financial pressure on households heading into winter, when heating costs are highest. Record arrears can also affect suppliers and may feed into future bills for all customers, making the trend a broad concern for consumers and the wider market.
Frequently asked questions
How much could households owe by the end of the year?
Energy UK warns that households in Great Britain could owe their energy suppliers as much as £7bn by the end of the year.
What is the current level of energy debt?
Domestic energy debt and arrears reached a record £6bn at the end of June, having climbed by about £500m over the past year.
Why are energy prices rising?
The Guardian reported that the Middle East conflict has continued to stoke rising gas market prices, with higher gas and electricity prices forecast for the winter.