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If a business has ceased trading and utility debts on commercial premises are outstanding, the gas and electricity bills may need to be treated as a priority. This is because energy suppliers can disconnect home premises for non-payment of commercial bills if the supplies are in the same name and provided by the same supplier. If a client is trading from home (or was previously and still has the same supplier), gas and electricity arrears are priority debts.
Clients with a commercial energy contract have less protection than domestic customers. If a client trades from part of the same building that they live in (eg, they run a shop and live in a flat above the premises), if possible, they should separate the supply to the two premises before arrears accrue to avoid the risk of disconnection of the domestic premises.
Water companies cannot disconnect the supply to residential premises and can only disconnect a supply to the premises to which the water was supplied. It is not entirely clear how this affects mixed-use premises. Ofwat has issued guidance stating it believes the disconnection of mixed-use premises could be illegal and reminds customers of their right to take court action if this happens. In practice, companies rarely disconnect mixed-use premises.
Water companies can disconnect the supply to a separate non-domestic premises. The environmental risk of a business being without water could lead to its closure. More information can be found on the Scottish Water website.
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