Understanding Your Rights When You Owe Money to Your Energy Supplier
If you owe money to your current energy supplier, it’s natural to worry about whether you can still switch to a new provider. The good news is that having energy debt doesn’t automatically prevent you from switching energy suppliers. There are clear rules and protections in place to support consumers in your situation.
Can You Switch If You Owe Money?
In most cases, you can switch suppliers even if you have an outstanding balance. However, the rules differ depending on the type of meter you have:
Standard credit meters: If you owe less than £500 for gas or £500 for electricity, you can usually switch. If your debt is higher, your current supplier may block the switch until you reduce your balance.
Prepayment meters: You can switch if your debt is £500 or less per fuel. The debt can be transferred to your new supplier, who will then collect it through your new prepayment meter.
These protections are set out by Ofgem, the UK’s energy regulator, and apply to all domestic energy customers.
Your Legal Rights and Protections
UK law and Ofgem rules provide important safeguards when you’re in energy debt:
Suppliers cannot disconnect your energy supply simply because you want to switch – even if you owe them money. Disconnections are only considered as a last resort, and strict procedures must be followed.
You have the right to clear information about your debt and repayment options. Your supplier must explain your balance and provide details about how you can pay what you owe.
You cannot be stopped from switching unless your debt exceeds the limits mentioned above, or if the debt is disputed.
Why Communication Matters
It’s important to contact your current supplier before starting a switch. Let them know about your plans and discuss your outstanding balance. This can help you:
Confirm the exact amount you owe
Understand whether your debt will affect your switch
Arrange a repayment plan that fits your circumstances
Avoid any misunderstandings that could delay the process
Open communication can also help you access support, such as grants or advice if you’re struggling to pay.
Know Your Debt and Repayment Options
Before switching, make sure you understand:
How much you owe: Check your most recent bill or contact your supplier for an up-to-date balance.
How you’ll repay: If you’re on a prepayment meter and your debt will transfer, ask your new supplier how repayments will work.
Any repayment plans: If you already have a payment arrangement, find out if it will continue with your new supplier or if you need a new one.
Taking these steps can help you switch smoothly and avoid any disruption to your energy supply.
For more on the general process and your rights, see our guide to switching energy suppliers.
How Outstanding Debts Affect Your Ability to Switch Energy Suppliers
When you owe money to your current energy supplier, it can affect your ability to switch to a new provider, but it doesn’t necessarily prevent you from doing so. Here’s what you need to know about how outstanding debts might impact your switch, what suppliers can require, and how to check your own situation before making a move.
How Your Debt Can Affect the Switching Process
If you have an unpaid balance with your current supplier, they may put a temporary hold on your request to switch until the debt is resolved. This is especially likely if you’ve owed the money for more than 28 days. Energy suppliers are allowed to block a switch if you have a debt on a prepayment meter of more than £500, or if you owe money on a standard credit meter and the debt is less than 28 days old.
However, for debts on a prepayment meter under £500, you’re usually still able to switch, and the debt will be transferred to your new supplier under the "Debt Assignment Protocol." This means you can continue to pay off your debt with your new supplier. For other types of meters or larger debts, your current supplier may insist you set up a repayment plan or clear the balance before approving the switch.
Legal Rights and Practical Barriers
Legally, owing money does not automatically stop you from switching energy suppliers. The main barriers are practical: suppliers can delay or block the switch if you haven’t met their debt repayment requirements. This is set out in Ofgem’s regulations, which aim to protect both consumers and suppliers.
Suppliers must treat you fairly and give you clear information about your debt, your options, and any steps you need to take before switching. If you feel you’re being unfairly prevented from switching, you have the right to make a complaint.
Repayment Plans and Delays
In many cases, your current supplier will ask you to agree to a repayment plan before allowing you to switch. This could involve paying off the debt in instalments, either before or after you move to a new supplier (depending on your meter type and the amount owed). If you don’t agree to a plan or settle the debt, your switch may be delayed or blocked.
Delays can also happen if there are disputes about how much you owe, or if your supplier hasn’t updated your account information. Make sure your bills are up to date and check for any errors before you start the switching process.
Checking Your Debt Status and Restrictions
Before you try to switch, contact your current supplier to confirm:
The exact amount you owe
Whether your debt is eligible for transfer to a new supplier (if you’re on a prepayment meter)
If there are any restrictions or blocks on your account that could delay the switch
What steps you need to take to clear the debt or set up a repayment plan
Keep records of all communications and payments, as this can help resolve any disputes if they arise during the switch.
Practical Tips
Review your latest bill and account statement for outstanding balances.
Ask your supplier if your debt qualifies for the Debt Assignment Protocol.
If you’re struggling to pay, discuss payment options or seek independent advice before switching.
Make sure your contact details are up to date so you receive all correspondence about your switch.
Understanding how debt affects your ability to change providers puts you in a stronger position to manage your energy costs and avoid unnecessary delays. For more on the process, see our guide to switching energy suppliers.
Steps to Take if You Owe Money and Want to Switch
If you owe money to your energy supplier but want to switch to a new provider, there are important steps you should follow to protect your rights and keep your energy supply running smoothly. Here’s what you need to do:
1. Contact Your Current Supplier
Start by getting in touch with your current energy supplier as soon as possible. Let them know about your situation and that you’re considering switching. Suppliers are required by Ofgem rules to work with you if you’re in debt, and many will help you set up a plan to repay what you owe.
2. Discuss and Negotiate a Repayment Plan
Ask your supplier about setting up a manageable repayment schedule. This can help you avoid disconnection and make it easier to switch suppliers in the future. You can use a letter for repaying debt to your energy supplier to formally propose a repayment plan in writing. Make sure any agreement is affordable for you, taking into account your other essential expenses.
3. Keep Records of All Communications
It’s important to keep a record of every conversation, email, or letter you exchange with your supplier about your debt and any repayment plan. Save copies of all correspondence and make notes of phone calls, including the date, time, and name of the person you spoke to. This documentation can be useful if there are any disputes or if you need to show what was agreed.
4. Explore Financial Support Options
If you’re finding it difficult to keep up with repayments, let your supplier know. Many suppliers have hardship funds or can offer other types of help. You may also be eligible for grants or government support. Learn more about getting extra support from your energy supplier if you’re struggling, or see our advice on struggling to pay your energy bills for further guidance.
5. Request a Switch – Know Your Rights
You have the right to switch energy suppliers, but there are some restrictions if you owe money:
If you have a standard meter: You can usually switch if your debt is less than 28 days old. If the debt is older, you’ll normally need to pay it off before you can switch.
If you have a prepayment meter: You can switch suppliers as long as your debt is £500 or less for either gas or electricity. The new supplier will usually take on your debt and you’ll repay them instead.
To start the switching process, contact your chosen new supplier. Let them know about your debt and any repayment plan you’ve agreed. They will guide you through what happens next and, if you’re eligible, arrange for the switch to go ahead.
Taking these steps can help you stay in control of your energy bills and avoid losing your supply. If you need more practical advice or support, explore the links above for detailed guidance and resources tailored to your situation.
Avoiding Disconnection While Switching Suppliers with Debt
When you owe money to your current energy supplier and want to switch, it’s natural to worry about the risk of having your energy supply cut off. The good news is that suppliers cannot disconnect your supply simply because you’re switching – even if you have outstanding debt. However, it’s important to understand your rights and responsibilities to avoid any risk of disconnection during the process.
Your Rights and Legal Protections
UK law offers important protections for energy customers in debt. Under the Energy Act 2013, energy suppliers are not allowed to disconnect your supply just because you want to switch to a new provider. This means you have the right to explore better deals or service without fear of losing your energy, even if you owe money.
Additionally, Ofgem – the regulator for gas and electricity markets – has put in place further safeguards to protect consumers from unfair disconnection. These rules mean suppliers must follow a fair process and give you every opportunity to resolve any outstanding payments. For extra reassurance, you can read more about Ofgem’s Safety Net, which explains how you’re protected if your supplier stops trading or if there are issues during the switching process.
The Importance of Keeping Up with Repayments
While the law protects you from immediate disconnection during a switch, unpaid or ignored debts can still put your supply at risk in the longer term. To avoid any interruption, it’s essential to stick to any repayment plan or agreed schedule with your current supplier. If you miss payments or break the terms of your agreement, your supplier may eventually take steps towards disconnection, especially if you remain with them.
If you’re struggling to keep up, don’t wait – reach out to your supplier as soon as possible. Most energy companies are willing to discuss flexible payment arrangements and can offer support if you’re experiencing financial difficulties. For further advice, see our guide on struggling to pay your energy bills.
What to Do If You’re Threatened with Disconnection
If your supplier threatens to disconnect your energy, contact them immediately to explain your situation and discuss your options. Suppliers are required to consider your circumstances and may help you set up a more manageable repayment plan. They must also give you proper notice before any disconnection and cannot cut you off without following the correct procedures.
Remember, switching can still go ahead safely if you communicate openly with your supplier and stick to any agreed payment plan. If you’re unsure about your rights or the process, you can find more detailed guidance in Ofgem’s Switch energy supplier | Ofgem resource.
By understanding your legal protections and staying in touch with your supplier, you can avoid losing your energy supply while managing your debt and making the switch to a new provider.
Managing Your Energy Use and Costs During the Switching Process
When you’re switching energy suppliers while owing money, managing your energy use becomes even more important. Not only can it help you reduce your current bills, but it can also make it easier to keep up with repayments and avoid falling further into debt. Here are some practical steps you can take during the switching process to keep your energy costs under control and support your financial wellbeing.
Simple Ways to Cut Your Energy Use
Small changes at home can add up to significant savings on your energy bills. For example:
Turn off appliances at the wall rather than leaving them on standby.
Switch to energy-efficient LED bulbs and remember to turn off lights when not in use.
Only boil the water you need in the kettle.
Wash clothes at lower temperatures and wait for a full load before running the washing machine.
Reduce heating costs by turning your thermostat down by just one degree, closing curtains at night, and blocking draughts.
For more detailed advice on how to save energy and cut your bills, have a look at these energy management tips.
How Better Energy Management Helps During Switching
When you owe money to your current supplier, they may require you to pay off your debt before you can switch, especially if you have a prepayment meter and owe more than £500. By lowering your energy use, you can reduce the amount you owe and make it easier to meet any repayment plans. This can speed up the switching process and reduce the risk of your energy supply being disrupted.
Linking Energy Savings to Financial Wellbeing
Taking control of your energy use doesn’t just help with your current bills – it also supports your overall financial health. Lower bills mean you have more money available to pay off debts or cover other essential expenses. Managing your energy wisely during the switch can give you more flexibility and confidence as you move to a new supplier.
Keeping on Track
Remember, being proactive about your energy use and costs can make a real difference. By following simple steps to save energy and staying on top of your bills and repayments, you’ll be in a stronger position to manage your debts and complete your switch smoothly. If you need more guidance, don’t hesitate to seek support and make use of the available resources.
Special Considerations for Renters Owing Money to Their Energy Supplier
Renters who owe money to their energy supplier can face unique challenges when trying to switch to a new provider. Understanding your rights and responsibilities is essential to avoid unexpected bills or disruption to your energy supply.
Who Is Responsible for Energy Bills and Debt in Rented Properties?
Responsibility for paying energy bills – and any debts that build up – usually depends on the terms of your tenancy agreement. In most cases, if your name is on the energy account, you are legally responsible for paying the bills, even if you move out or the tenancy ends. If the landlord manages the energy account, the responsibility typically falls to them, and any debt should not be transferred to you.
It’s important to check your tenancy agreement carefully. Some agreements specify whether you can choose your own energy supplier, while others may require you to use a supplier chosen by your landlord. If you’re unsure, ask your landlord or letting agent for clarification.
Challenges Renters May Face When Switching with Debt
Renters can encounter additional hurdles when trying to switch energy suppliers while owing money:
Landlord Restrictions: Some landlords include clauses in tenancy agreements that restrict switching suppliers without their permission.
Prepayment Meters: If you have a prepayment meter due to previous debt, there may be limits on switching until your debt falls below a certain threshold (usually £500 per fuel).
Shared Tenancies: In shared accommodation, all tenants named on the bill are jointly responsible for any debt, which can complicate switching if not everyone agrees.
Practical Advice for Renters Wanting to Switch
If you’re a renter and want to switch energy suppliers while you owe money, consider the following steps:
Check Your Tenancy Agreement: Before making any changes, confirm whether you have the right to switch suppliers. Some tenancy agreements require you to get the landlord’s permission first.
Clarify Account Responsibility: Make sure you know whose name is on the energy account. Only the named account holder(s) can initiate a switch and will be responsible for any outstanding debt.
Communicate with Your Landlord: If your landlord manages the energy supply, discuss your options with them. They may be able to help resolve debts or approve a switch.
Understand Switching Rules: If you owe money on a standard credit meter, you usually can’t switch suppliers until the debt is paid. With a prepayment meter, you may be able to switch if your debt is £500 or less per fuel.
Protect Your Credit: Unpaid energy bills can affect your credit rating. Make sure to settle any debts or agree on a repayment plan with your supplier before moving out or switching.
Why Checking Tenancy Agreements and Permissions Matters
Switching suppliers without following the terms of your tenancy agreement could lead to disputes with your landlord or even breach your contract. Always review your agreement and get written permission if required. This can help prevent misunderstandings and ensure a smooth transition.
For more detailed guidance tailored to your situation as a renter, see our page on switching energy supplier or tariff if you’re renting.
By understanding your rights and responsibilities, and taking the right steps, you can manage your energy debt and make informed decisions about switching suppliers while renting.
Summary and Next Steps
Switching energy suppliers when you owe money is possible, but there are important rules and steps to follow. If your debt is less than 28 days old, you can usually switch without any issues – your final bill will include the amount you owe. However, if you’ve owed money for more than 28 days, your current supplier can block the switch until the debt is cleared. If you have a prepayment meter, you can switch as long as your debt is £500 or less for gas or electricity, and the debt will move with you to your new supplier under the “Debt Assignment Protocol.”
It’s vital to keep the lines of communication open with your current supplier. Let them know if you’re having trouble paying, as they may be able to set up a manageable repayment plan or offer other forms of help. Ignoring the debt can make things more difficult, and could even risk your energy supply being disconnected in extreme cases.
Managing repayments is key to staying in control of your situation. If you’re finding it hard to keep up, consider looking into getting extra support from your energy supplier. Suppliers are required by Ofgem rules to treat customers fairly, offer realistic payment plans, and provide information about financial support schemes. If you’re struggling to pay your energy bills, there may be grants or other assistance available to help you manage your payments.
Remember, you have rights designed to keep your energy supply safe during the switching process. Your supplier cannot cut you off simply because you’re switching, and they must follow strict procedures before taking any action on unpaid bills. If you want to know more about the wider process, see our guide to switching energy suppliers.
Taking action early and seeking support if you need it can make switching much smoother – even if you owe money. Don’t hesitate to reach out for advice and explore all your options to stay on top of your energy bills and keep your home powered.
