Energy Complaints Soar as Households Brace for Higher Bills

 

Energy Complaints Soar as Households Brace for Higher Bills

## Billing Disputes Make Up Three in Five Complaints to the Ombudsman

There's a number that's been keeping energy company executives up at night: **46,532**. That's how many complaints the Energy Ombudsman accepted in the first six months of 2026. It's a **16% surge** from the same period last year—and the first half-year rise in complaints since 2023, when Britain was in the grips of an energy crisis following the pandemic and Russia's invasion of Ukraine.

Behind that number are millions of households already stretched thin by the cost of living, now facing the prospect of even higher bills. And at the heart of the surge is a single, stubborn issue: **billing disputes**.

Three in every five complaints to the Ombudsman are about billing. That's **58%** of all cases, with billing complaints rising **15% year-on-year** to **27,006**. Smart meter issues account for another **10%**. And complaints have now increased for three straight quarters.

This isn't just a statistic. It's a signal that the energy market is failing to get the basics right.

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## The Ombudsman Data: A Market Under Strain

### The First Half-Year Rise Since 2023

Between January and June 2026, the Energy Ombudsman accepted **46,532 cases**, up from **40,068** in the same period last year. This marks the first mid-year increase in overall complaints recorded since 2023.

The trend is clear: **complaints have increased for three straight quarters**. And the ombudsman's data shows that the market is struggling to keep up with the pressure households are under.

### Billing Disputes: The Primary Driver

Disagreements regarding billing remained the primary source of frustration, accounting for **58% of all cases**. These complaints rose by **15% year-on-year, reaching 27,006**.

As one consumer advocate put it: *"A wrong or missing bill can push people into the red"*. With energy debt already at record levels, the stakes couldn't be higher.

### Smart Meters: A Growing Concern

Issues surrounding smart meters formed another key area of concern, representing **10% of queries** in the second quarter and climbing **6% overall to 4,817**. As smart meters become more widespread, so do the complaints about their accuracy and functionality.

### Customer Service: A Small Bright Spot

There were some positive signs for suppliers. Complaints accepted for customer service were **down 5%** to 3,500 in the half-year. More energy firms are also informing customers of their right to refer disputes to the ombudsman after eight weeks or a deadlock has been reached. The ombudsman said average "signposting" rates have increased from **48% in 2025 to 53%** in the first six months of 2026.

But even with these improvements, the overall trend is unmistakable: **complaints are rising, and households are suffering**.

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## The Price Cap: Another Hit Coming

### A 4% Increase from October

The complaints data arrives just ahead of a critical moment. On Wednesday, Ofgem is expected to announce an increase in the energy price cap from October 1. Analysts at Cornwall Insight have forecast that average annual energy bills will rise by **4% to £1,729** from October 1—the highest level in three years.

That would represent a **£66 increase** for a typical household, wiping out savings from the government's VAT cut on energy, which is projected to deliver an annual saving worth just £43. Separate forecasts by EDF predicted a similar rise to £1,722 in October, and a further increase to **£1,815 in January**.

### The Iran War Factor

The latest increase has been driven by the **war in Iran**, which has cut global oil and gas supplies and left European gas storage operators struggling to refill stocks before winter. Bills are set to jump just as demand for heating begins to climb.

While much of the escalation has resulted from the Iran war, analysts have warned that the cost of delivering net zero and a decarbonised grid by 2030 is also pushing up bills.

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## The Human Cost

### Record Energy Debt

Behind the complaints and the price cap forecasts is a human story of families struggling to keep their homes warm. EnergyUK, the industry group, reported that British households are carrying around **£6 billion in unpaid energy bills and arrears**. The group warned that outstanding household energy debt could rise to **£7 billion** by the end of 2026 if no measures are introduced.

The average amount owed has jumped **19% in three years**, rising from £2,037 to **£2,432**. And the number of customers in debt or behind with their repayments has rocketed in recent years.

### A Warning from the End Fuel Poverty Coalition

A spokesperson for the End Fuel Poverty Coalition didn't mince words: *"These figures are a warning that the energy market is still failing to get the basics right"*. The coalition warned that it's "exactly the wrong moment for Ofgem to be weighing up whether to water down binding billing rules".

With bills set to rise again from October, *"this is not a minor inconvenience. A wrong or missing bill can push people into the red"*. The coalition noted that *"energy debt is already at record levels as people struggle to afford energy, while the energy industry continues to post billions in profit"*.

### The Ombudsman's Response

Ed Dodman, the chief ombudsman for energy, acknowledged the scale of the challenge: *"The findings in this report highlight the continued challenges facing many energy consumers at a time of ongoing pressure on household finances"*.

He added: *"Energy Ombudsman has an important role to play in ensuring consumers can access fair resolutions when things go wrong, while supporting suppliers to resolve disputes and address the root causes of complaints. We will continue to monitor complaint trends closely and work with suppliers to address areas of concern and ensure consumers can access fair, timely resolutions when things go wrong"*.

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## What's Being Done?

### New Powers for the Ombudsman

The Department for Energy Security and Net Zero announced in June that it would bolster the energy ombudsman's powers and improve access for consumers. The changes include:

- Cutting the complaint escalation timeframe from eight weeks to six weeks

- Allowing compensation for consumers when remedies are not secured on time

A government spokesman said: *"Tackling the cost of living remains a key priority for this Government and we know families will be worried by the prospect of higher energy bills this winter"*. The government is *"acting to give consumers breathing space with the cost of living – cutting VAT on energy bills, ensuring around six million households get the £150 warm home discount"*.

### The Regulatory Debate

But there's a concern that these efforts could be undermined. Ofgem is consulting on whether to replace binding billing rules—including protections on bill accuracy, timeliness, and meter readings—with a looser, outcomes-based approach. The most far-reaching option on the table would remove those rules altogether.

For consumer advocates, that's a step in exactly the wrong direction at exactly the wrong time.

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## Frequently Asked Questions (FAQs)

### 1. How many complaints did the Energy Ombudsman receive in the first half of 2026?

The Energy Ombudsman accepted **46,532 cases** in the first six months of 2026, a **16% increase** from the same period last year.

### 2. What is the most common type of energy complaint?

**Billing disputes** are the most common complaint, accounting for **58% of all cases**. Billing complaints rose **15% year-on-year** to 27,006.

### 3. How much is the energy price cap expected to rise in October 2026?

Analysts at Cornwall Insight forecast a **4% increase** to £1,729 from October 1—the highest level in three years. EDF predicts a similar rise to £1,722 in October and a further increase to £1,815 in January.

### 4. What is causing energy bills to rise?

The primary driver is the **war in Iran**, which has cut global oil and gas supplies. Analysts have also pointed to the cost of delivering net zero and a decarbonised grid by 2030.

### 5. How much energy debt are UK households carrying?

British households owe approximately **£6 billion in unpaid energy bills and arrears**. This could rise to **£7 billion** by the end of 2026.

### 6. What is the government doing to help?

The government has cut VAT on energy bills and is ensuring around six million households get the £150 warm home discount. The Department for Energy Security and Net Zero is also bolstering the ombudsman's powers, including cutting the complaint escalation timeframe from eight weeks to six weeks.

### 7. What is the ombudsman's role?

The Energy Ombudsman provides a free and impartial service to help resolve disputes between consumers and suppliers. It accepts complaints about energy suppliers, investigates them, and can require suppliers to take action.

### 8. Why are smart meter complaints rising?

Smart meter complaints made up **10% of queries** in the second quarter and rose **6% overall** to 4,817. As smart meters become more widespread, issues around their accuracy and functionality are also increasing.

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## Conclusion: A Warning That Can't Be Ignored

The 16% surge in energy complaints is not just a statistic. It's a warning. A warning that the energy market is failing to get the basics right. A warning that millions of households are struggling to keep up with rising bills. A warning that the system is broken.

The ombudsman's data shows that **billing disputes are the primary driver** of complaints, accounting for three in every five cases. Smart meter issues are also on the rise. And complaints have now increased for three straight quarters.

It's a pattern that reflects the broader pressures on household finances. Energy debt has reached record levels, with households owing **£6 billion** in unpaid bills. The price cap is set to rise again in October. And the war in Iran is pushing up global energy costs just as winter approaches.

There are some signs of progress: customer service complaints are down, and more firms are informing customers of their rights. But the overall picture is one of a system under strain.

As the End Fuel Poverty Coalition warned, it's exactly the wrong moment for Ofgem to be considering watering down consumer protections. With bills set to rise again, a wrong or missing bill can push people into the red.

The ombudsman's role is clear: to ensure consumers can access fair resolutions when things go wrong. But the underlying problems—rising bills, record debt, and a market that too often fails its customers—require a broader solution.

Until that solution arrives, the complaints will keep coming. And the households behind them will keep struggling.

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## Disclaimer

*This article is for informational and educational purposes only and does not constitute financial, professional, or legal advice. The information provided is based on publicly available data from the Energy Ombudsman, Ofgem, Cornwall Insight, EnergyUK, and other cited sources as of August 2026. Energy prices, price cap levels, and complaint statistics are subject to change. For personalised advice regarding your energy bills or disputes, please contact your energy supplier, the Energy Ombudsman, or a qualified professional who can evaluate your specific situation. The author is not affiliated with the Energy Ombudsman, Ofgem, or any other entity mentioned in this article.*