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How to switch energy supplier when in debt

Even if you owe your supplier money for unpaid energy bills, you may still be able to switch. Find out what you need to do to either take your debt with you, or pay off what you owe.

Man looking at bill

Yes, you can switch energy supplier if you're in debt and have a credit meter if either of the following conditions apply to you:

  • Your supplier sent you the bill less than 28 days ago
  • Your supplier hasn’t sent you a bill

You're sent a final bill from your old supplier after switching, which you need to repay.

If your supplier sent a bill over 28 days ago, then it's likely to reject your application to switch. If you’ve already complained to your supplier about the bill, and it agrees that it might be wrong, it should let you switch.

If your switch is rejected, you need to pay off the outstanding amount you owe before attempting to switch again.

Yes, so long as your debt is £500 or less. If you owe more than £500 of either gas or electricity, you can't switch until it’s reduced to under £500.

If it’s under £500, you should first speak to your new supplier to check it’s willing to take on the debt. It should agree to do this under what is termed the ‘Debt Assignment Protocol’. This means that the debt isn’t wiped out but is transferred to your new supplier.

Try to pay off that debt as soon as possible. If you can’t afford to pay it off in 1 lump sum, speak to your energy supplier. If you’ve suddenly received a back-bill due to a miscalculation or underpayments, check your rights. Your supplier can't charge you for energy you used over 12 months ago in most circumstances. 

You may also be able to set up a repayment plan with your supplier. This means you can pay back the debt in instalments over an agreed period. If you’re already on such a plan, but struggling to meet payments, again speak to your supplier. It may be willing to spread the payments over a longer period to make them more affordable.

If you’re repaying debt through your prepayment meter, some of the credit you use to top up your meter goes to pay off the debt. This leaves you less credit for your day-to-day energy usage. Look for ways to reduce your energy usage to help cut your costs while you pay off the debt.

You may also be able to get financial help if you’re receiving benefits. The Fuel Direct Scheme allows you to set aside a fixed amount of your benefits to pay back what you owe. This is then deducted from each benefits payment you receive to pay off the debt.

Many suppliers may also offer financial help if you’re on a low income and struggling to pay your bills or repay debts:

If you’re struggling to pay your bills, then the most effective thing you can do is to switch to a cheaper tariff. The quickest way to do this is to compare energy deals with us. Just follow these 4 steps:

  1. Go to our energy comparison page and click the ‘Get started’ button.
  2. Enter your postcode and street address, then confirm your details.
  3. Review the list of suggested tariffs – both fixed-rate and variable. Click ‘Plan info’ next to a tariff to find out more about it.
  4. When you’ve found the best tariff for you, click ‘Switch today’. We’ll contact your new supplier and it handles the switching process for you. 

I’ve moved into a property with a prepayment meter that already has a debt on it. Can I switch supplier?

You should contact the home’s current supplier as soon as you move in. If possible, avoid using any existing key or card, or put any money into the meter until you’ve done this. That’s because you could end up paying extra, you end up paying for your usage and paying off the last owner's debt. When you contact the supplier, make sure you:

  • Inform it of the date you moved in
  • Ask for information on how the meter works and what to do if you run into problems
  • Get it to send a new prepayment key or card so you can put money on the meter using your own account
  • Ask it to remove any existing debt from the meter, so you don’t end up paying off someone else’s debt

Once the supplier has done all of this and confirmed the debt is clear, you can then look to switch supplier.

What is the Debt Assignment Protocol (DAP) and how does it work?

The DAP exists for customers who use a prepayment meter to switch suppliers even if they’re in debt. The Debt Assignment Protocol can be used so long as the debt is £500 or less. If it is, the DAP moves the money you owe to the new supplier when you switch tariff. You need to agree a repayment plan with your new supplier to continue paying back what you owe.

 

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