British households owe £6 billion ($8.18 billion) in unpaid electricity and gas bills,
according to data released Monday by industry group EnergyUK.
The debt reflects the balance owed as of the end of June 2026. EnergyUK presented this data during a call with reporters ahead of an expected announcement from Ofgem, scheduled for this week.
Ofgem is expected to announce a 4% increase in the domestic price cap, bringing it to its highest level in three years.
The unpaid energy debt is currently spread across all consumer bills, adding approximately £50 per year, or about 3%, to a typical annual bill.
Without government intervention, the debt could reach £7 billion by the end of the year, EnergyUK warns.
Ofgem is considering options to help debtors. A proposal to write off £500 million in debt for the poorest consumers requires legislation, but has not yet been implemented.
Wholesale energy prices have risen this year due to the war in Iran. Wholesale costs are the most significant factor in determining the internal price cap, which Ofgem sets quarterly using a formula that also takes into account suppliers' network costs, environmental and social charges.