Energy sector debt hits £4.4bn

Latest data from Ofgem shows that energy suppliers are owed at least £4.43bn in energy debt. It is believed that this figure is likely to be significantly higher, as it only accounts for debt that has been outstanding for more than 91 days.

The data from April to June (Quarter 2, 2025) shows that household energy debt has doubled since 2020, with more than one million homes lacking repayment plans, with average arrears standing at £1,716.

The data showed that there are currently 1,133,683 electricity customers and 926,545 gas customers in debt without any repayment arrangement in place.

The debt is leaving households facing up to an extra £145 a year on their bills to cover the collective shortfall.

A spokesperson for the End Fuel Poverty Coalition said “Energy debt is now driving people into dangerous financial positions as we approach the fifth winter of the energy bills crisis. Previous research has found that almost one in five households in energy debt have turned to illegal money lenders, with households waking each morning fearful of what using electricity or gas might cost them.

“We must urgently write off arrears and reform the system so fewer households are powerless to pay off their debts.”

Independent Age Policy Manager, David Southgate, said “Older people on low incomes are increasingly bed-bound by the cold – forced to turn in early in hats, gloves, scarves, and extra blankets during the winter to stay warm. Many have fallen into debt in a bid to keep the heating on, with yet another difficult winter just around the corner, and they need immediate support.

“We are calling on the UK Government to tackle this mountain of debt with a properly funded and targeted debt relief scheme, alongside wider affordability reform, including a national energy social tariff, to ensure everyone can afford to heat and power their homes.”