Condition 27 of the Standard Licence Conditions
If you are threatened with disconnection because you cannot pay your bill, SLC 27 gives you the following rights.
•You are entitled to a payment arrangement to repay your arrears at a rate you can afford.1Condition 27.6(a)(iii) and 27.8 SLC •You can use, where available, a means by which payments may be deducted at source from a social security benefit such as Fuel Direct (see here).2Condition 27.6(a)(i) SLC •You may pay by regular instalments and through a means other than a prepayment meter.3Condition 27.6(a)(ii) SLC •If you have been unable to manage a payment arrangement, you must be offered a prepayment meter (if safe and reasonably practicable) as an alternative to disconnection. The meter must be set to recover arrears at a realistic rate which you can afford.4Condition 27.6(a)(iii) and 27.8 SLC •If you are a pensioner5As defined in s48(2B) GA 1986, Sch 4 para 1 Pensions Act 1995 and Condition 1.3 SLC or have children under 18, you should receive protection from disconnection in winter (see below). If the supplier knows or has reason to believe you are such a customer, it must not disconnect you if you live alone or live with another pensioner or children under 18.6Condition 27.10 SLC This provision applies even where there is suspicion of theft of electricity.7Condition 12A 11(d) SLC •If you are below pension age and your household includes people who are of pensionable age, disabled or chronically sick, the supplier must take ‘all reasonable steps’ to avoid disconnecting your supply in winter.8Condition 27.11 SLC •You should be offered information about how you can reduce your charges by using fuel more efficiently.9Condition 27.6(b). Also see Condition 31.2(a) and (b) SLC
Winter
‘Winter’ is defined as the months of October, November, December, January, February and March.10Condition 1 SLC Suppliers are obliged to develop methods for dealing with customers in arrears under the terms of this condition. These set out the procedures which should be followed by each supplier and provide the practical mechanism for protecting your rights. Any departure from the methods may constitute a breach of your rights and could be referred to Ofgem for investigation.
Calculation of an instalment rate
Under SLC 27 a supplier must not disconnect you unless it has first taken all reasonable steps to arrange the repayment of outstanding charges. This means that your supplier must:
The supplier must also consider:
•relevant information provided by third parties, such as a social worker, a carer, physician, health visitor, where it is available;14Condition 27.8(a) SLC and •where instalments will be paid using a prepayment meter, the value of all of the charges that are to be recovered through that meter.15Condition 27.8(b) SLC
Suppliers should ensure that they properly and proactively take into account your ability to pay. This includes that your supplier:16Condition 27.8A SLC •has suitable credit management policies and guidelines;
•ensures that it actively communicates with you and establishes early intervention;
•understands your ability to pay;
•sets repayment arrangements relative to your ability to pay and personal observed circumstances;
•ensures all available information is obtained and taken into account when setting repayment rates;
•only sets default amounts when information about ability to pay is unavailable;
•sets default amounts subject to change once information about ability to pay is made available;
•sets reasonable default repayment rates;
•sets appropriate channels for you to quickly and easily raise concerns;
•proactively explores payment amounts and payment methods which are appropriate to your circumstances;
•makes you aware of debt advice services when in payment difficulty;
•pauses scheduled repayments for an appropriate period as part of your repayment plan and reviewing your repayment plan in accordance with your ability to pay at regular intervals before reinstating scheduled repayments;
•ensures that you understand any new arrangement made, including the rate of payment, method of payment, length of plan or recovery period and action to take if you experience difficulties;
•monitors any arrangement made, including for credit payment arrangements, to check for the occurrence of failure and, for prepayment meter arrangements, to check whether the meter is being used initially and on an ongoing basis;
•monitors any arrangement made, including review of a failed payment arrangement, discussing alternative and suitable payment arrangements or methods of payment.
You should provide your supplier with a detailed financial statement (see here).