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Writer's pictureTom McGlynn

Struggling to pay your small business' energy bills?

Updated: May 2, 2023



If you can’t pay your supplier

If you've been told you'll be disconnected call the consumer helpline. They can help you resolve the problem with your supplier.


Coronavirus - get financial help

You might be able to get support from the government to help your small business recover from the pandemic if it:

  • is trading in the UK

  • has a turnover of £45 million or less

You’ll need to show that your business:

  • is viable

  • is not in difficulty

The Recovery Loan Scheme can help you access loans and other kinds of finance - check how to apply to the Recovery Loan Scheme on GOV.UK.

If you need more advice, you can:

  • contact the Citizens Advice consumer helpline - they can give you advice about your business’s energy contract and help you understand your rights

  • contact Business Debtline - they can give you free debt advice if you have a small business or you’re self employed

 

If you're having trouble paying the energy costs for your small business, there are steps you may take.


What you ought to do is dependent upon:

  • You already owe money to your provider,

  • you received a bill you can't pay,

  • and you frequently struggle to make ends meet.

 

Check if something is an energy scam


Energy scams are on the rise.


Scammers have different ways of getting hold of personal information or bank details. For example, by pretending to:

  • be a supplier offering a refund

  • be from Ofgem - asking for information so you can get the £400 energy rebate

  • be a debt collector asking for money owed to a supplier that’s gone bust

  • offer green home improvement grants

  • offer energy investment opportunities

  • offer cheap prepayment meter top up keys or cards

  • offer energy-saving devices

You can also contact our scams advisers if you:

  • think you might have found an online scam

  • need advice about scams

  • want to report an online scam


If you're in debt to your energy supplier


It's critical to move fast because, if you don't make plans to take care of the debt, your electricity supply could be cut off within 30 days.


A disconnection fee will often be added to the amount you owe if you are disconnected. If you're reconnected, you'll have to pay an additional cost.


Make a call to the customer service line; they can assist you in resolving the issue with your supplier.


You'll need to provide information regarding your debt, so it's a good idea to gather any bills or correspondence from your energy provider before calling.


If you've had a bill you can't afford


Call your supplier and inquire about the calculation if you believe the bill is incorrect.


Ask whether you can set up a payment plan if the bill is correct but you are unable to pay it. Before you call, create a budget to ensure that you can pay the bills.


Contact the consumer helpline if your energy company won't let you arrange a repayment plan.


Check you haven't been overcharged


If you're a 'microbusiness' you can only be billed for energy you've used in the last 12 months.

Your company will normally count as a microbusiness if it either:

  • has fewer than 10 employees or turns over less than £1.8 million a year

  • uses no more than 100,000 kWh of electricity

  • uses no more than 293,000 kWh of gas per year

Check your bill or ask your supplier if you're not sure how much energy you use per year.

If you think you've been overcharged, call your energy supplier and complain.

Explain that because you're a microbusiness you can't be billed for energy used more than 12 months ago.


If you're struggling to pay your bills


If you often find it hard to pay your energy bills there are things you can do to try to reduce them.


Switch supplier


Contact us to see if there is a cheaper tariff available for you.


 

If your energy supplier goes bust

Don’t switch tariff or supplier until your account is moved to the new supplier. You might find it harder to get any money you’re owed if you switch before this happens.

 

Make sure you're being billed accurately


You may be paying more each month than necessary if your supplier estimates your bills.


Send your supplier the readings from your metres on a regular basis. To ensure that you don't forget, set up a recurring reminder on your phone or calendar.


It's important to inquire if your supplier can take additional measures to maintain the accuracy of your bills, such as providing you with a smart metre.


Make your business energy efficient


There are techniques to lower the amount of power and gas you consume, such as:


  • Make sure your building is insulated against draughts,

  • turn off computers and other equipment at night if they aren't in use,

  • and use energy-efficient light bulbs.

  • Use only the amount of hot water you actually need, and mend any leaky hot taps.


If you need more help


If you need more advice about dealing with your energy bills and we are unable to help, you may wish to contact the Citizens Advice consumer helpline. They can give you unbiased advice about small business energy contracts and your rights.







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