UK households now owe a record £4.79 billion to energy suppliers, according to the latest figures from regulator Ofgem. The debt mountain rose by £240 million, or 5%, in the first three months of 2026 alone, as soaring energy prices continue to strain household finances.
Debt quadruples since 2018
The overall debt pile has more than quadrupled since 2018, when it stood at just under £1.1 billion. Ofgem attributes the relentless rise to "affordability challenges", high levels of historical debt, and industry processes. Most of the debt is owed by customers who are at least three months behind with their payments.
For electricity customers without a repayment plan, the average debt is £1,876, up from £587 a decade ago. For gas, it is £1,623, up from £558 in 2016. Where customers have a repayment plan, the average debt is lower — £828 for electricity and £679 for gas — but both are at record highs.
Price cap increase adds pressure
From next Wednesday, Ofgem's price cap will increase by 13% to £1,862 a year for a typical dual-fuel household paying by direct debit. This is an increase of £221, or £18 a month, from the current cap of £1,641. Most households, whether in debt or not, ultimately pay an estimated £50 added to the average annual bill to cover the cost of debt.
Ofgem reported that the average number of electricity accounts in debt rose by 3% to 852,000, and gas accounts in debt rose by 4% to 710,000. Over 1.1 million electricity accounts and 900,000 gas accounts are behind on payments without a repayment plan in place.
Charities call for debt relief
James Mabey, policy analyst at the charity National Energy Action, said: "It is deeply worrying that Ofgem's latest figures show energy debt has risen again to a new record high. For the households National Energy Action supports, the consequences of energy debt include cold homes, rising anxiety and impossible choices about essentials." He added that allowing debt to persist adds costs to future price caps and risks harmful responses such as forced installation of prepayment meters.
Gillian Cooper, director of energy at Citizens Advice, said: "It is extremely worrying that energy debt has again grown to record levels, but it's not a surprise. At Citizens Advice, we've seen a staggering 70% increase in the number of households we support with energy debt since 2021." She urged the government to support Ofgem's long-delayed Debt Relief Scheme and provide targeted help this winter for the 9.4 million households worried about paying bills.
Ofgem action on home movers
Ofgem is moving to tackle one of the biggest causes of energy debt build-up, which accounts for around a third of historical debt. Currently, when a supplier becomes aware a billpayer has left a property, the account is switched to "the occupier", continuing supply and accumulating debt. This can cause issues for new occupants until they register. Ofgem plans to publish proposals later this summer to reform this process, requiring householders to set up accounts before getting a supply.
Neil Kenward from Ofgem said: "Energy debt is continuing to rise, putting pressure on households facing the stress of debt, increasing costs for bill payers, and limiting the industry's ability to invest and innovate. This is a complex, industry-wide issue, that needs to be addressed with a balanced and coordinated programme of activity across the industry."
