Energy industry group Energy UK has warned that households in Great Britain may run up as much as £7 billion in unpaid energy bills by the end of the year as elevated winter prices take hold.
Rising arrears
Domestic energy debt — measured as bills unpaid for more than 30 days — climbed by about £500 million over the previous 12 months to reach a record £6 billion at the end of June, Energy UK said. The group attributed the rise in part to upward pressure on gas market prices linked to the Middle East conflict.
Energy UK said the combination of higher wholesale gas and electricity costs and winter demand increases is likely to push more households into arrears in the months ahead. The industry body flagged that the proportion of unpaid bills outstanding for more than 30 days is expected to increase as suppliers pass through higher costs and consumers face larger bills.
The warning highlights the financial strain on households and the potential for greater bad debt on supplier balance sheets if bill payments are not maintained. Energy firms and consumer groups have previously urged targeted support measures for vulnerable customers during periods of sustained price pressure.
Energy UK did not set out detailed forecasts for how arrears would be distributed across income groups or regions, but its statement underscores wider concerns about affordability and the impact of volatile international gas markets on domestic energy costs as the winter season approaches.