Energy debt payment plans: your rights
If you owe your gas or electricity supplier, a payment plan you can afford is your right, not a favour. Here is how to get one that works.
Applies to: England, Scotland & Wales
What to do now
- Write down your income and essential costs with the budget calculator.
- Call or write to the supplier’s financial difficulty team and ask for a plan based on that budget.
- Ask to join the Priority Services Register if anyone in your home is eligible.
What your supplier must consider
Ofgem rules require suppliers to take your ability to pay into account when setting repayments. That means looking at your income, your essential costs and your other priority bills, not just the size of the debt. You can ask your supplier to review your payments and debt repayments at any time.
Types of arrangement
| Arrangement | How it works | Worth knowing |
|---|---|---|
| Regular payment plus arrears | Your normal usage payment with a set extra amount for the debt. | Ask how the usage part was worked out; an estimate that is too low makes new arrears. |
| Payment break or reduction | Lower or paused payments for a short time. | Get the end date and what happens next in writing. |
| Prepayment meter | A set amount is taken from each top-up for the debt. | You can ask for the recovery rate to reflect what you can afford — prepayment meters and debt. |
| Fuel Direct | If you get certain benefits, the arrears and usually ongoing usage are paid straight from your benefit. | On Universal Credit, deductions for debts are normally capped at 15% of the standard allowance in total. |
What to say
- “I am in financial difficulty and want a repayment plan based on my ability to pay.”
- Give your income and essential spending, and tell them about other priority debts.
- Tell them about anything that makes you vulnerable, such as health conditions, age or young children.
- Ask what hardship funds or grants they offer — energy debt grants.
- Ask for the agreed plan in writing.
Check the bill first
Make sure the debt is right before you agree to repay it. Ofgem’s back-billing rules mean a supplier usually cannot charge you for energy used more than 12 months before it sent a correct bill, if the delay was not your fault. Check that the bill uses real meter readings, not estimates.
If the plan is unaffordable
Ask for a review straight away and send an updated budget. If the supplier will not agree something you can afford, make a written complaint. If it is not resolved within eight weeks, or the supplier sends a final response you disagree with, you can take it to the Energy Ombudsman free of charge.
You never have to pay for debt advice. MoneyHelper (government-backed), StepChange, National Debtline and Citizens Advice all give free, confidential advice with no obligation.
Common questions
Does my energy supplier have to accept my offer?
It does not have to accept any particular figure, but Ofgem rules require it to take your ability to pay into account. Show your budget so it can see what is realistic.
Can energy arrears be added to a prepayment meter?
Yes. A set amount can be taken from each top-up towards the debt. You can ask for that rate to be set at what you can afford.
What is Fuel Direct?
A way of paying energy arrears, and usually ongoing usage, directly from certain benefits such as Universal Credit. Ask your supplier or the Department for Work and Pensions about it.