Can I get my Energy Debt Written Off?
For free & impartial money advice you can visit MoneyHelper. We work with The Debt Advice Service who provide information about your options. This isn’t a full fact-find, some debt solutions may not be suitable in all circumstances, ongoing fees might apply & your credit rating may be affected.
For free & impartial money advice you can visit MoneyHelper. We work with The Debt Advice Service who provide information about your options. This isn’t a full fact-find, some debt solutions may not be suitable in all circumstances, ongoing fees might apply & your credit rating may be affected.
Are you finding it hard to pay your energy bills? This can be a big worry, but you’re not alone. Every month, over 170,000 people visit our website for guidance on debt solutions.
In this guide, we’ll provide helpful and easy-to-understand advice on:
- What to do if you can’t pay your energy bills.
- The ways to dispute your energy bill.
- The length of time energy companies can chase you for debt.
- Whether you can get your energy bill written off.
- How to get help with your energy bill.
StepChange stresses the need for professional debt advice, noting that 60% of adults in financial trouble hesitate to seek help.1
We understand the stress of dealing with debt and are here to offer guidance. We’ll take you step by step through your options and explain when and how your energy debt could be written off. We know it’s tough when you can’t pay your bills, but don’t worry; we’re here to help you understand your options and find a way forward.
Let’s get started.
Can I dispute my energy bill?
You can dispute an energy bill if you believe you have been charged the wrong amount. To dispute a bill, you should say why you think the bill is incorrect and it is best to put this in writing either by sending an email or a letter. If you send a letter to dispute your bill, you should keep a copy for your records.
How long can energy companies chase you for debt?
The limitation period to collect most debts is six years or five years for those in Scotland. This includes energy bill debts. If you have not made a payment or acknowledged the debt is yours within this timeframe, the debt is no longer legally enforceable.
What this means is the energy company can no longer take legal action against you to force payment or use enforcement action. And without being able to do this, they cannot make you pay. At this point, your debt has become statute-barred and you will not have to pay.
» TAKE ACTION NOW: Fill out the short debt form
Can I get my energy bill written off?
You are allowed to ask an energy company to write off your debt, although it may not work. You might ask the lender to write off your debt if you are experiencing financial difficulty. I have created a free letter template to help you ask for the debt to be wiped.
It is unlikely that the energy company will agree to write off all of your debt, even if you have financial hardship. Instead, they are more likely to offer you an affordable payment plan and possibly remove any charges on your account for late payments.
A payment plan can be a good option, but if you have other arrears you should seek debt advice to explore alternative solutions first.
If your debt has become statute barred then you do not need to ask for the debt to be written off. It automatically becomes legally unenforceable. But you might want to make them aware that the debt has become statute barred by sending them a letter. Just make double sure it has become statute-barred before sending a letter.
How a debt solution could help
Some debt solutions can:
- Stop nasty calls from creditors
- Freeze interest and charges
- Reduce your monthly payments
A few debt solutions can even result in writing off some of your debt.
Here’s an example:
Situation
| Monthly income | £2,504 |
| Monthly expenses | £2,345 |
| Total debt | £32,049 |
Monthly debt repayments
| Before | £587 |
| After | £158 |
£429 reduction in monthly payments
If you want to learn what debt solutions are available to you, click the button below to get started.
What happens if I don’t pay?
If you don’t pay your energy bill you will enter into arrears with the energy company and they will contact you to clear the debt. If you do not pay or agree to a payment plan, they could pass your details on to debt collectors or eventually take court action against you.
Any court action or association with debt collectors will have a negative impact on your credit score, be noted in your credit file and will make it difficult for your future finances.
In my experience, it is always best to stay in communication with your energy supplier about your financial circumstances. Negotiating a payment plan is a good idea to help avoid unnecessary stress – you can’t ignore a problem like this!
There are many debt solutions at your disposal, so don’t worry. Please check out the table below to learn more about them.
| Debt Solution | Description | Formality | Debt Type | Debt Range | Legally Binding | Impact on Credit Score | Asset Risk | Monthly Payment | Duration | Creditor Agreement Required |
|---|---|---|---|---|---|---|---|---|---|---|
| Debt Management Plan (DMP) | Agreement to pay back non-priority debts in one monthly payment. | Informal | Non-priority debts | Any amount |
No | Yes | No | Varies | Varies (until debt is paid) | No (but creditors must be informed) |
| Individual Voluntary Arrangement (IVA) | Agreement to pay back all or part of your debts over a set period. | Formal | All or part of debts | Usually over £10,000 | Yes | Yes | Possible | Fixed | Fixed period, usually 5-6 years | Yes (75% by debt value must agree) |
| Debt Relief Order (DRO) | Freezes debt for a year and be potentially written off. | Formal | Non-priority debts | <£20,000 debt | Yes | Yes | No | None during freeze | 12 months | No (court approval needed) |
| Bankruptcy | Legal status for those who cannot repay debts, potentially writes off debts. | Formal | Unmanageable debts | Any amount, typically high debt | Yes | Yes | High | None during bankruptcy | Usually 12 months, then discharge | No (court process) |
| Consolidation Loan | Taking out a new loan to pay off all existing debts. | – | Multiple debts | Based on loan amount | Varies | Yes | Depends on loan type | Fixed | Depends on loan terms | No |
| Payment Holiday | Temporary relief or reduced payments offered by creditors. | – |
short-term financial difficulties | Any | No | Yes | Low | Reduced or paused payments | Break of up to 6 or 12 months, depending on circumstances, payment history, and creditor’s policy. | No |
| Informal Negotiation | Direct negotiation with creditors for reduced payments or extended terms. | – | All debts | Any | No | Possible | No | Negotiable | Until agreement terms are met | No |
| Statutory Debt Repayment Plan (SDRP) | Plan to repay debts over a reasonable time, with protections from creditor action. | Formal | All debts | Varies | Yes | Yes | No | Fixed | Varies, based on ability to pay | Yes |
| Equity Release | Homeowners release equity from their home to pay off debts. | – |
Debts of homeowners, typically older individuals aged 55+ | Varies and depends on property value | Yes | Yes | Asset (home) is used as collateral | Varies | 8-10 weeks timeframe from application to fund disbursement. Lifetime; repaid on house sale/death. | No |
Can you have your electricity cut off because of debt?
It is possible for some people to have their electricity cut off if they have not paid their bills, but it is rare. You cannot have your electricity cut off if you meet certain criteria, such as having health issues or children living at the property.
The energy company must offer you a payment plan to get out of arrears first, and if you don’t have a smart metre they will need to apply for a court order to enter your home to disconnect the supply.
In a nutshell, it is possible but unlikely to happen. There are better solutions for the energy company and you.
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Can I be forced to have a prepayment meter?
If you are in arrears with your energy company, they may be able to get a warrant to force-fit a prepayment meter. If you already have a smart meter, your supplier may just switch it to a prepayment setting remotely. However, this should only ever be done as a final resort.
Your supplier must have made reasonable steps to make an agreement with you to repay your debt.
If you are in a vulnerable group, it may not be possible for your supplier to fit a prepayment meter at all due to Ofgem’s rules.
Can I get a fuel voucher?
A fuel voucher is a code that provides you with credit to top up a domestic electricity or gas metre. You might be able to get a fuel voucher from your local council if you are struggling to pay for energy and have a metre at home.
Read more about the ways to get help paying energy costs from Citizens Advice here.
Can I get help with my energy bill?
If you are struggling to afford your energy bills, you may be able to get additional financial help.
If you use coal, wood, oil, or liquified petroleum gas (LPG) to heat your home, you may be eligible for help. To qualify, you need to demonstrate that you can’t heat your home because you can’t afford it.
Unfortunately, that’s pretty much it for extra financial help for your energy bills. Ofgem offers some advice for those struggling to pay for their energy, as do Citizens Advice and StepChange.
Can my landlord charge me for energy?
Your landlord can charge you for energy but only if your tenancy agreement says that they can. I recommend carefully reading your tenancy agreement to check what terms your landlord will charge you if they do at all. Your landlord must give you a copy of your tenancy agreement if you don’t have one.
If your landlord charges you for energy and benefits or has previously benefited from a government support scheme, they have an obligation to pass on some or even all of the support they received.
This is called a ‘pass-through’ requirement and needs to be done as soon as they can. It is important to note that you, the tenant, do not need to do anything for this to happen.
If your landlord doesn’t give you all of the support they have received, they must tell you why.
Keep in mind that there are some circumstances when you won’t be eligible to receive any of this support.
If your energy bills are part of your rent payment and you have paid the same rent since before energy prices went up, it is reasonable for your landlord not to give you a rebate. If your tenancy ended before you got the support and your landlord made reasonable attempts for at least 6 months to give it to you with no luck, you can’t try to claim it.
I recommend checking the guidelines to make sure no rules are being broken!
Can you have your water cut off for not paying?
By law, your water company is not allowed to disconnect your water supply even if you have not been paying your bills and have arrears. However, this is not a reason not to pay your water bill. If you do not pay your bills the company could get a County Court Judgement (CCJ) against you and even use bailiffs.
Further help with energy bill debts
Energy bill debts are some of the most common types of household debt in the UK. This means there are so many different questions to answer and things to know. That’s why MoneyNerd has created lots more free articles discussing energy bills and how to tackle them. Give them a read soon!
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