The parent company of British Gas is forecast to report record profits next week as energy debt levels in the UK reach new heights.

Centrica is preparing to report its first-half operating profits for the year after previously claiming the market has fallen to a "more normalised" backdrop.

Households in the UK have been saddled with record high energy bills amid the ongoing cost of living crisis.

British Gas' owner is set to post operating profit of £997million for the first six month of the year, based on analysis from investment bank Jeffries.

This is expected to account for about 62 per cent of full-year earnings of £1.6billion.

Centrica's first-half operating profit for 2022 and 2023 made 50 per cent and 75 per cent of the full year earnings, respectively.

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Jefferies noted that Centrica could be in a standing to announce a fresh share buyback, following several tranches of buybacks already over the last 12 months.

A share buyback is when a organisation buys its shares back from the marketplace with this cash being returned to shareholders.

This action can sometimes result in the stock prices in companies to drop over a period of time.

As such, it is only done when they have plenty of money and when the stock market is on the up.

Analysts have cited the British Gas owner's strong net cash position which is expected to be more than £2billion in the years to come.

They explained: "Centrica’s balance sheet continues to look attractive to us.

"With this, we see the possibility of the company providing an update on its capital allocation policy at (first-half) results which was originally set last year."

The pending half-year results come after Centrica has previously claimed its year has fallen in line with expectations.

This is despite the energy market returning to a “more normalised” market backdrop following a drop in gas prices.

Said prices skyrocketed due to wholesale pressures on the wider energy market, including Russia's invasion of Ukraine.

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However, these profits come as more families are finding themselves unable to pay their energy bills and being trapped in a spiral of debt.

Latest figures from regulators suggest some 6.1 million households are still struggling to pay their energy bills, even though Ofgem's price cap has fallen.

Debt figures from Ofgem revealed a level stand at £3bn for July 2.

Furthermore, the National Debtline found 6.1 million Britons have been left unable to pay their energy bill in full or found difficulty making payments.