Special features of electricity and gas arrears
If there are arrears fuel supplies may be disconnected, therefore this is potentially a priority debt. The prioritisation of the debt depends on the client’s continued need for that fuel at their present address.
A supply can only be disconnected at the address to which the bill relates.
Note: a supplier cannot transfer a debt from a previous property to a new account and then disconnect that fuel supply for the previous debt.
It may be possible to reduce charges by changing supplier. Under the Gas Act 1986, standard conditions of gas supply licence (SLC) condition 14, if the arrears are not in dispute and meet the definition of outstanding charges per condition 1.2 ’at least 28 days old and remain unpaid’, the old supplier can object to the transfer unless the arrears are paid.
This does not apply to clients with prepayment meters, provided the debt does not exceed £500 and the client agrees that the new supplier can collect the arrears through the meter. If the client has both gas and electricity from the same supplier, the figure is £500 per fuel.
A prepayment meter can only be fitted at the address to which the bill relates (unless the client requests otherwise).