A common question we get asked and hear a lot of clients discussing is the cost of living. Energy bills in particular are a cause of concern at the moment for a large percentage of the UK. So here are a few facts to clear up any worries of misunderstandings about energy debts
The most common method of energy firms dealing with continual late or nonpayment is your supplier can collect the debt you owe using a debt collection agency. However, they can request permission from the home occupier / owner or also get a court warrant, to enter your home to fit a prepayment card meter, which is becoming more common place than debt collection now.
Your energy supplier might be able to cut you off - but only in very rare cases now
. If your supplier has tried to come to an agreement with you first and you fail to adhere to the terms of the agreement, then this could be a potential outcome. But if you haven't been paying your bills, they will contact you first and try and resolve the issue. It is only if you haven't attempted to agree to a viable solution to pay your debt, that your energy provider can apply to the courts for a warrant to enter your home or retract services.
If you have historic debts or debts that have not been followed up by the energy supplier, then Ofgem rules state; an energy supplier cannot chase debts which are more than a year old if it was at fault. However, administrators can chase debts which are up to six years old, meaning energy consumers could suddenly be stung with unexpected or unaffordable bills, backdated from several years before. It is however at the suppliers or administrators discretion how they resolve this.
The best thing for any debtor to do is to speak with their supplier and attempt to setup a repayment schedule. Ensure this plan is affordable and can be met, because failure to adhering to an agreed term could be worse than the initial non-payment and result in a court summons. But don’t be scared or worried about debt, there are people who can support and give advice on your options. For more information, get in touch with us
and let X-debt give you guidance and support to clear your unaffordable debts.