Households in Great Britain ‘could owe energy suppliers £7bn by end of year’
Summary
Households in Great Britain could owe up to £7 billion to energy suppliers by the end of 2024 due to rising gas and electricity prices. Energy UK, an industry group, says bills will increase as the government’s price cap is expected to rise, and many families are already struggling to pay their energy debts.Key Facts
- Energy debt owed by households in Great Britain was £6 billion at the end of June 2024.
- This debt could grow by another £1 billion, reaching £7 billion by the end of the year.
- Rising gas prices, influenced by conflicts in the Middle East, are the main cause of higher energy costs.
- The government is likely to raise the energy price cap by 4% from October 2024.
- The price cap increase will cancel out the effect of a planned VAT cut on electricity bills.
- Typical household energy bills may reach around £1,729 a year under the new price cap.
- Energy UK recommends a targeted “social discount tariff” to help low-income households.
- Unpaid energy bills add about £50 per year to normal bills for all consumers due to cost spreading.
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