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UK Household Energy Debt Hits £4.43 Billion as Ofgem Plans Relief Scheme

Ofgem plans a targeted debt-relief scheme to tackle what it calls unsustainable arrears.

Overview

  • New Ofgem figures show household energy debt rising from £1.45 billion at the end of 2020 to £3.69 billion in Q2 last year and £4.43 billion now.
  • A total of 1,133,683 electricity customers and 926,545 gas customers are in debt without any repayment arrangements in place.
  • The regulator says the mounting arrears could add about £145 to the average household’s annual bill.
  • The government says it will widen the Warm Home Discount to more than six million households this winter.
  • Campaigners call for arrears write-offs and a national energy social tariff, citing worsening hardship among older and low-income households.