Britain's household energy debt has reached a staggering £4.43billion, marking an increase of £750million compared to the same period last year, according to new data from Ofgem.
The energy regulator's figures expose a dramatic escalation in consumer arrears since 2020, when total debt stood at £1.45billion.
The crisis has deepened significantly over recent years, with debt levels climbing to £3.69billion in the second quarter of 2024 before reaching the current record high.
Households have been saddled with record high energy bills in recent years amid market turmoil in the fallout of Russia's invasion of Ukraine.
Britons are saddled with billions in energy debt
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More than two million energy customers currently owe money without having established any repayment plans, Ofgem's data reveals.
The regulator reports that 1,133,683 electricity customers and 926,545 gas customers have accumulated debt with no arrangements to clear their arrears.
As a result, the accumulated £4.43billion debt burden translates into approximately £145 extra per year on every household's energy bills, as companies seek to recover these mounting losses.
Ofgem has acknowledged the crisis is "unsustainable" and requires urgent intervention from regulators, Government and energy companies.
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| GETTYA spokesperson confirmed the regulator is developing a debt relief programme aimed at helping struggling households manage arrears accumulated during the energy crisis.
"We're working at pace on plans to introduce a debt relief scheme that could help struggling households get back on track and rectify some of the debt that built up during the energy crisis," the Ofgem spokeswoman said.
However, campaigners warn the situation has become desperate, with nearly one in five indebted households resorting to illegal moneylenders, according to previous research cited by the End Fuel Poverty Coalition.
Simon Francis, coordinator of the End Fuel Poverty Coalition, warned that "households waking each morning fearful of what using electricity or gas might cost them" as the country approaches its fifth consecutive winter of elevated energy bills.
In response to these concerns, he has called for urgent debt write-offs and systemic reform.
The Government has pledged to work with Ofgem to address the debt crisis, highlighting plans to extend the Warm Home Discount scheme to more than six million households this winter.
A Government spokesman said they are "working urgently with Ofgem to drive debt out of the system".
Campaigners including Independent Age are demanding a comprehensive debt relief programme and the introduction of a national social energy tariff to ensure affordability.
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Ofgem figures have revealed the extend of UK's energy debt woes
| GETTYIndependent 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, 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.”