British household energy debts hit £6 billion, industry group says

LONDON, Aug 24 (Reuters) - British households owe £6 billion ($8.18 billion) in unpaid energy debt and arrears, industry group EnergyUK said on Monday.

• Regulator Ofgem is expected to announce this week a 4% increase in its domestic price cap, taking it to a three-year high.

• EnergyUK presented the updated debt figure in a call with journalists on Monday ahead of the price cap announcement and said the data represented debt at the end of June 2026.

• Unrecovered energy debt is spread across all consumer bills and currently adds around £50 a year or around 3% to a typical annual bill.

• EnergyUK said the debt figure is likely to reach £7 billion by the end of the year without intervention.

• Regulator Ofgem has been looking at options to help indebted consumers but a scheme to clear £500 million of debt for the poorest customers, which needs government legislation, has stalled.

• Wholesale energy prices, which have soared this year due to the Iran war, are the largest single factor contributing to the domestic price cap, which is ⁠set on ​a quarterly basis using a formula that also ​reflects suppliers' network costs and environmental and social levies.

($1 = 0.7339 pounds)

(Reporting By Susanna TwidaleEditing by Tomasz Janowski)