Switching energy supplier with debt: rules and support
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MoneyNerd introduces enquiries to The Debt Advice Service and may receive a referral fee. For free, independent guidance and help finding a debt adviser, visit MoneyHelper.
This information and enquiry service is not a full financial assessment or a guarantee of suitability or debt write-off. Debt solutions are not suitable for everyone. Fees may apply, and your credit record and assets may be affected. Get advice on your circumstances before choosing a solution.
Check debt objections, prepayment transfers and compensation rules before switching household energy suppliers in Great Britain.
Things to Know
If you owe money to your current energy supplier, you don’t always have to pay it back before switching to another supplier.
But then, when is it mandatory to pay off debt before switching? To make sure that your energy supplier isn’t being unfair, you’ll need to know the rules for energy provider switch with arrears.
You can only switch energy suppliers in debt if you meet the following conditions:
1. The 28-Days Rule
For a credit-meter account, debt owed for less than 28 days should not prevent a switch; it is added to the final bill. Older debt may allow the supplier to object, subject to the rules and exceptions. Ask for the reason in writing if a switch is blocked.
Debt caused by a supplier’s billing error may be treated differently. An objection does not mean you must use money needed for essential living costs to clear the whole balance immediately: ask about affordable support and the conditions for resolving the objection.
» TAKE ACTION NOW: Fill out the short debt form
2. The £500 Rule (Prepayment Meter)
A prepayment customer may switch with up to £500 debt for gas and up to £500 for electricity through the Debt Assignment Protocol. Ask the new supplier to agree to transfer the relevant debt. The limit includes £500, not only amounts below it.
The debt is transferred, not written off. Compare tariff costs and agreed debt deductions, and confirm the arrangement with both suppliers. See Ofgem’s switching guidance.
Understand your debt options
MoneyNerd can introduce you to The Debt Advice Service for free debt advice. MoneyNerd does not provide debt advice or recommend debt solutions.
The Debt Advice Service can explain your options, including their benefits, costs and risks. Options available depend on your circumstances. There’s no obligation to take a debt solution.
MoneyNerd does not provide debt advice or recommend debt solutions. The Debt Advice Service is a trading style of Pacific Financial Solutions Limited. If you request an introduction, we’ll share your details with their team so they can contact you.
Some debt solutions have fees and may negatively affect your credit rating. MoneyNerd is a commercial introducer and may receive a fee if you go ahead with a debt solution through The Debt Advice Service.
For free, impartial money guidance and help finding free debt advice, visit MoneyHelper.
Can They Disconnect My Supply If I Don’t Pay?
Disconnection for debt is a last resort subject to strict procedures and vulnerability safeguards. Missing a payment does not automatically authorise disconnection after 28 days or a universal seven-day notice. Involuntary prepayment also requires checks that it is safe and reasonably practicable.
Tell the supplier promptly if you cannot pay or anyone is vulnerable. Ask for affordable support and get urgent free advice if supply is threatened. See Ofgem’s help guidance.
Take the first step towards tackling your debt
Every day, our partner, The Debt Advice Service, helps people understand their options for dealing with debt. Their debt advice is free, with no obligation to proceed.
MoneyNerd introduces you to The Debt Advice Service. We do not provide debt advice or recommend debt solutions.
Natasha
Very helpful and informative thank you
If you submit the enquiry form, MoneyNerd will share your details with The Debt Advice Service so they can contact you.
Some debt solutions have fees and may negatively affect your credit rating. MoneyNerd may receive a fee if you go ahead with a debt solution through The Debt Advice Service.
The Debt Advice Service is a trading style of Pacific Financial Solutions Limited.
For free, impartial help and access to not-for-profit debt advice, visit MoneyHelper.
