What Happens If You Cannot Afford Your Energy Bills?
Falling behind with energy bills can be worrying.
However, owing your supplier money does not mean you lose your rights.
Your supplier should work with you to find a way forward. Importantly, any repayment arrangement should take account of what you can actually afford.
The sooner you speak to your supplier, the more options you may have.
Start by Checking the Debt
Before agreeing to repay anything, make sure the amount is correct.
Check:
- Your meter readings
- The dates covered by the bill
- Whether readings are actual or estimated
- Payments you have already made
- Any previous credit balance
Also check whether part of the amount results from an old billing problem.
As we explained on the previous page, the back-billing rules may sometimes limit how far back a supplier can charge.
Once you are satisfied that the debt is correct, the next question is:
What can you afford to pay?
Your Supplier Should Consider What You Can Afford
If you cannot pay the debt in full, ask for a payment plan.
This normally needs to cover two things:
Your current energy use
and
An affordable amount towards the debt
Your supplier should take account of your ability to pay when agreeing the arrangement. This includes your income, spending, other debts and personal circumstances.
For example, suppose your current energy costs are:
£100 a month
You also owe:
£600
Simply demanding £200 a month towards the debt may leave you unable to afford essentials.
A longer repayment period could be more realistic.
The important point is:
A repayment plan needs to be affordable.
If the Repayment Becomes Unaffordable
Circumstances change.
Perhaps your income falls.
Energy prices may rise.
Another essential household cost could increase.
If you can no longer afford an agreed payment plan, contact the supplier again.
Ask for the arrangement to be reviewed.
Do not assume that because you agreed to an amount six months ago, it can never change.
Citizens Advice specifically advises customers who are struggling with an existing plan to ask their supplier to reduce the repayments.
Energy Debt Is a Priority Debt
Energy arrears should be taken seriously.
If you owe money to your current gas or electricity supplier, Citizens Advice treats this as a priority debt because there can be serious consequences if it is not dealt with.
However, that does not mean:
Pay the energy company whatever it demands.
It means:
Do not ignore the problem.
If you have several debts and cannot afford them all, independent debt advice can help you decide what needs dealing with first.
What About a Prepayment Meter?
A prepayment meter changes when you pay for energy.
With a normal credit arrangement:
Use energy → Pay later
With prepayment:
Pay first → Use energy
You add credit to the meter before using gas or electricity.
For some households, this can make budgeting easier.
However, there is an important disadvantage.
If you cannot afford to top up, your energy supply can stop.
That makes suitability particularly important.
Using Prepayment to Repay Debt
A prepayment meter can also collect energy debt.
Part of each top-up may go towards what you owe.
Imagine you add:
£20
Some of that money may pay down the debt, while the remainder becomes credit for current energy use.
If the debt deduction leaves you unable to afford enough gas or electricity, contact the supplier.
Suppliers must take affordability into account, and you can ask for the debt repayment amount to be reduced.
Can a Supplier Force You Onto Prepayment?
In some circumstances, a supplier may seek to move a customer in debt onto prepayment.
This might involve installing a prepayment meter.
If you already have a smart meter, the supplier may instead seek to switch it remotely into prepayment mode.
However, suppliers cannot simply do this whenever they choose.
There are rules they must follow.
For example, current protections can prevent an involuntary move to prepayment in certain circumstances.
Citizens Advice Scotland states that suppliers will not move a customer involuntarily to prepayment where the debt is below £200 for electricity or £200 for gas, where it has been less than three months since the bill was issued, or where the customer has disputed the bill and explained why.
Other protections depend on the household’s circumstances.
Prepayment Must Be Safe and Practical
This is one of the most important principles.
A prepayment meter may be perfectly manageable for one person and completely unsuitable for another.
Imagine someone who cannot physically reach their meter.
Or someone who cannot easily travel to a top-up point.
Perhaps a household member depends on energy for important health needs.
The supplier needs to consider whether prepayment is safe and practical for the household.
Current rules provide additional protections in a range of circumstances.
Therefore, if prepayment would create a problem, tell the supplier why.
Do not simply say:
“I don’t want a prepayment meter.”
Explain the actual circumstances.
Tell Your Supplier About Your Circumstances
The word vulnerability can be misleading.
People sometimes hear it and think:
“That doesn’t describe me.”
However, vulnerability in the energy market can arise from many different circumstances.
Some may be permanent.
Others may only last for a short time.
For example, additional support may be relevant because of age, disability, a long-term health condition, pregnancy, young children in the household or difficulty communicating with the supplier.
Even recovering from an injury could temporarily make a prepayment meter difficult to use.
Therefore:
Tell your supplier what is happening, not just that you are struggling.
That information may change the support available.
The Priority Services Register
The Priority Services Register, or PSR, provides extra support for people who may need it.
You may qualify because of your age, health, disability or other circumstances.
Support can include practical measures such as:
- Priority help when contacting the supplier
- Identification arrangements for visiting engineers
- Help where a prepayment meter is difficult to access
The exact support depends on your needs.
Being on the PSR does not mean you receive free energy.
It means your supplier and network can better understand that you may need additional support.
What If You Cannot Afford to Top Up?
This needs immediate attention.
If you have run out of gas or electricity because you cannot afford to top up, contact your supplier.
Temporary credit may be available.
Citizens Advice says suppliers should provide temporary credit where someone cannot top up, including where they cannot afford to do so or are having problems topping up.
You may hear terms such as:
Emergency credit
or
Additional support credit
The exact arrangements depend on the meter and circumstances.
However, this credit normally has to be repaid.
Therefore, it provides breathing space rather than free energy.
Self-Disconnection Is Important
When a prepayment customer runs out of credit and loses supply, this is often called self-disconnection.
The phrase can make it sound like a voluntary choice.
Sometimes it isn’t.
A person may simply have no money available to top up.
If you are repeatedly running out of credit, tell the supplier.
This can be a sign that the current arrangement is not affordable or suitable.
It may also indicate that the debt repayment taken from each top-up needs reviewing.
What If You Cannot Reach the Meter?
Prepayment also needs to work physically.
Suppose the meter is high on a wall and you cannot reach it.
Perhaps it is inside a locked communal cupboard.
Or the nearest physical top-up point is difficult for you to reach.
Tell the supplier.
Depending on the circumstances, another top-up method or a meter move may help. Citizens Advice notes that suppliers may be able to move a meter or provide other ways to top up.
For customers on the Priority Services Register who struggle to access the meter, the supplier should move it free of charge where a move is needed.
Can You Move Back From Prepayment?
Potentially, yes.
Having a prepayment meter does not necessarily mean you must remain on prepayment forever.
With a smart meter, the supplier may be able to change it from prepayment mode to credit mode remotely.
With an older prepayment meter, changing payment method may involve replacing the meter.
However, outstanding debt can affect whether the supplier agrees to move you back to credit.
If prepayment is no longer safe or practical for you, explain this clearly to your supplier.
Prepayment Is Not Automatically Bad
It is important to keep this balanced.
Some people prefer prepayment.
It can make energy spending very visible.
You know how much credit remains and can decide when to top up.
For someone who finds monthly bills difficult to manage, that may be useful.
The problem is not prepayment itself.
The question is:
Does prepayment work for this household?
If it does, it can be a perfectly reasonable way to pay.
If it does not, the consequences can be serious.
What If You Have Children or Other People Living With You?
When discussing vulnerability, tell the supplier about the whole household.
Do not only describe the person whose name appears on the bill.
For example, the presence and age of children can be relevant to decisions about whether involuntary prepayment is appropriate. Other household circumstances can matter too.
Therefore, explain who lives in the property and anything that could make loss of supply particularly difficult.
Help With Energy Debt May Be Available
A repayment plan is not always the only option.
Depending on your circumstances, you may be able to get help through benefits, grants or other support.
Some people receiving certain benefits may also be able to repay energy debt through the Fuel Direct Scheme.
Some energy suppliers and other organisations also provide grants that may help with energy debt. Eligibility varies.
If you are struggling with several bills at once, independent debt advice can be particularly useful.
A Simple Way to Deal With Energy Debt
If you are falling behind, try to deal with the problem in this order.
1. Check the bill
Make sure the amount is correct.
2. Work out what you can afford
Look at income and essential spending.
3. Contact the supplier
Tell them you are struggling.
4. Explain your circumstances
Mention anything that affects your ability to pay or use the energy supply safely.
5. Agree an affordable arrangement
Do not promise payments you know you cannot maintain.
6. Ask about additional support
This might include the Priority Services Register, temporary credit, grants or other help.
7. Ask for another review if circumstances change
An affordable plan today may become unaffordable later.
The important thing is to keep communicating.
Do Not Wait Until the Situation Becomes a Crisis
It is tempting to avoid opening a bill when you know you cannot afford it.
Unfortunately, the debt does not disappear.
Earlier contact usually gives you more opportunity to discuss payment arrangements and support.
You do not need to have a solution before calling.
You can simply say:
“I cannot afford the amount you are asking me to pay. I need you to review what I can realistically afford.”
That starts the conversation.
In Short
If you owe money for energy, do not ignore it.
First, make sure the debt is correct.
Then speak to your supplier about what you can genuinely afford.
Your supplier should consider your ability to pay when arranging repayments.
If prepayment is being considered, the supplier must follow additional rules. Your circumstances matter, particularly where prepayment would not be safe or practical.
And if you already use prepayment but cannot afford to top up, contact your supplier rather than simply remaining without energy. Temporary support may be available.
The central message is simple:
Energy debt needs dealing with.
But the solution also needs to be affordable and suitable for the household.
Next: Problems With Your Energy Supplier →
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