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Energy Debt Soars to Record £4.4bn
21 Nov, 2025
Summary
- Total household energy debt has reached a record £4.4bn.
- Network maintenance costs, not wholesale prices, now drive energy bills.
- Ofgem proposes £500m debt write-off for struggling consumers.
The nation's energy bills are increasingly influenced by the significant costs associated with overhauling and maintaining its energy networks, surpassing the impact of wholesale prices. Charities are observing a concerning rise in outstanding customer debts, which have collectively reached an alarming record of £4.4 billion. In response, regulator Ofgem is considering measures to ensure energy companies reduce this debt burden.
Ofgem's proposals aim to alleviate this financial strain by potentially knocking £500 million off the total amount owed, with these changes anticipated to take effect early next year. Energy UK, representing energy suppliers, emphasizes the importance of direct communication, urging individuals facing payment difficulties to contact their energy providers promptly.
Suppliers can offer assistance through various means, including advice on efficient appliances, adjusting tariffs to better suit individual needs, and ensuring customers are receiving all eligible benefits. With winter approaching, the government has also hinted at further cost-of-living support in an upcoming Budget, while practical tips for managing heating costs are also available.
