UK Household Energy Debt Hits £6 Billion as Ofgem Weighs 4% Winter Price Cap Rise
Updated
Updated · The Mirror · Aug 24
UK Household Energy Debt Hits £6 Billion as Ofgem Weighs 4% Winter Price Cap Rise
3 articles · Updated · The Mirror · Aug 24
Summary
More than 3 million UK households now owe energy suppliers money, with average arrears at £1,800 and total debt reaching £6 billion, according to new Energy UK analysis.
Energy UK said the debt pile is still on track to hit £7 billion by year-end as Ofgem prepares to announce a new price cap on Wednesday, with analysts expecting a 4% increase from October.
Cornwall Insight estimates the annual cap for a typical direct-debit household will rise to £1,729 in October from £1,663, after a 13% increase already took effect in July.
Energy UK is pressing for a social discount for low-income, disabled and vulnerable households, saying bad debt already adds about £50 a year to bills and is straining suppliers' finances.