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 switching supplier. Clients on a standard variable rate tariff could save money by moving on to a fixed rate deal with another supplier. If they have owed money for less than 28 days (eg, they have not yet paid a recent bill), they can usually change supplier in the usual way, and the debt is transferred to the new supplier.
Switching supplier while in debt after 28 days is subject to a protocol agreed between Ofgem and energy suppliers. If you have a credit account and a debt, your supplier can stop you from moving to a new supplier until you pay off your debt – this is referred to as ‘debt-blocking’. If your current supplier blocks your request to switch, it must advise you on the best tariff for you, managing your debt and energy efficiency.
1Condition 14.9 SLCClients with a prepayment metershould be able to switch supplier and transfer a debt of up to £500 per fuel.
2Ofgem debt assignment protocol for prepayment meter customers letter, 12 May 2015, This happens under a debt assignment protocol.
A prepayment meter can only be fitted at the address to which the bill relates (unless the client requests otherwise).