Assignment of outstanding charges to your new supplier

Assignment of outstanding charges to your new supplier

• Domestic customer transfer blocking

You might become liable for an old energy bill where the supplier has assigned the outstanding debt to your new supplier. If you failed to pay the old supplier within 28 days of the charges being due, it may assign the debt to your new supplier. If your new supplier agrees, it can take over the debt where:

•it has become due to the first supplier;
•it had been demanded in writing; and
•you were notified that the charges might be assigned.

However, it is more likely that the transfer will be blocked by a supplier within the framework laid down by Standard Licence Condition (SLC) 14.

Domestic customer transfer blocking

Under SLC 14, the supplier may prevent a proposed supplier transfer where:

•there are outstanding charges; or
•you did not ask for a transfer.1Condition 14.4 SLC

A supply transfer cannot be prevented where gas is supplied by a prepayment meter and you have agreed to pay the existing charges, which should be no greater than £500. Nor can a transfer be stopped where the supplier has increased charges but has not reset the prepayment meter within a reasonable period, and the outstanding charges only relate to the period since a price increase.2Condition 14.5 SLC and 14.6 SLC

 

1     Condition 14.4 SLC »

2     Condition 14.5 SLC and 14.6 SLC »