Can I switch suppliers if I’m in debt?

Can you change energy supplier if you owe money?

Falling behind on your gas and electricity bills can be a stressful experience, and many people assume that owing money traps them with their current supplier. Being stuck on an expensive tariff can make it even harder to clear the balance. However, you can usually switch energy suppliers if you are in debt. The energy market has specific rules designed to help consumers move to cheaper deals, even if their account is in arrears.

The main factor that decides whether your current supplier will allow you to leave is the type of meter you have in your home. Prepayment meters and standard credit meters operate under completely different sets of regulations. While switching is mostly a straightforward process handled in the background by your new supplier, debt creates a few extra steps. Understanding the exact thresholds and rules will help you work out if you can move immediately, or if you need to contact your supplier to arrange a repayment plan first.

How your meter type affects your right to switch

The rules for switching with debt are split into two categories based on how you pay for your energy. If you pay for your energy before you use it, you have a prepayment meter. If you pay for your energy after you use it—whether by a monthly Direct Debit, or by paying a bill every quarter—you have a standard credit meter.

Rules for standard credit meters

For households with a standard credit meter, the right to switch depends entirely on the age of the debt. You are free to switch to a new supplier if the debt has been on your bill for less than 28 days. For a debt objection, the supplier must first have told you about the debt and it must then have remained unpaid for more than 28 days. If you start a switch within this window, you can select a new deal as normal and let the changeover run its course.^[1][2]

If the debt has been outstanding for more than 28 days, your current supplier has the right to step in and block the switch. If you try to move your account to another company, the transfer will be paused. You will need to repay the debt before switching, although your supplier should discuss an affordable repayment plan if you are struggling to pay.

Rules for prepayment meters

If you use a prepayment meter, the rules are based on the total amount of money you owe, rather than how old the debt is. You can change your tariff and switch suppliers as long as your outstanding balance is £500 or less per fuel. Because gas and electricity are treated separately, a dual-fuel household can hold up to £1,000 of debt in total across both fuels and still be allowed to switch.

This is made possible by an official Ofgem regulation known as the Debt Assignment Protocol. Under this rule, licensed suppliers must allow prepayment customers with minor debts to move. The debt is transferred from your old supplier to your new one, meaning you still have to pay it off, but you will make those payments to your new provider. If you owe more than £500 on a single fuel, your current supplier will block the transfer.

Is switching worth it right now?

If you are allowed to switch, you need to work out whether moving to a new tariff makes financial sense. As of July 2026, the price cap for a typical dual-fuel household paying by Direct Debit is £1,663 a year under the updated typical-consumption values. Average unit rates are 26.11p per kWh for electricity and 7.33p per kWh for gas. However, the price cap only applies to standard variable tariffs. By actively switching to a more competitive fixed deal, households can typically save between £90 and £250 a year, depending on their usage and where they live.^[1][2][3][4]

Locking in a fixed rate might be particularly useful for households trying to budget for the winter while managing debt. Cornwall Insight's latest forecast indicates that the October 2026 price cap could be around £1,700 a year under updated typical-consumption values. A fixed tariff can make budgeting more predictable, but check its unit rates and exit fees before choosing it.

However, you must factor in exit fees. If you are currently on a fixed tariff rather than a standard variable one, leaving early usually triggers a penalty charge. These fees typically range from £30 to £75 per fuel. If your supplier charges a £75 exit fee for gas and another £75 for electricity, a switch will cost you £150. A move is only practically worthwhile if the annual savings on the new tariff clearly exceed the exit fees you have to pay to leave.

What happens to the debt when you move supplier?

The way your debt is handled during a switch depends entirely on your meter type. It is important to know who you will owe money to once the switch completes, as this affects how you manage your budget.

If you have a standard credit meter, managing the transition can be tricky. Because the debt does not move to the new supplier, you will effectively have two energy outgoings for a short period. You will need to pay your new supplier for the energy you are currently using, while simultaneously paying off the final bill from your old supplier. If you cannot afford to pay the final bill in one lump sum, you should contact your old supplier immediately to set up a payment plan. They cannot refuse a reasonable offer of repayment.

Many people worry that switching suppliers while owing money will ruin their credit score. The act of changing energy suppliers is simply an administrative process and is not a credit event in itself. However, the missed payments that led to your debt may already be recorded on your credit file by your current supplier. Additionally, your new supplier may run a routine credit check when you open the new account, which is standard practice across the industry.

Disputed bills, renting, and moving home

Sometimes a debt builds up because the bill is incorrect. If you are refusing to pay because you believe the supplier has made a mistake—such as charging you for a meter you do not own, or estimating your usage far too high—you have specific rights. If you have raised an official complaint and are disputing the bill, the supplier should not block your switch while the dispute is being investigated. You can proceed with moving to a new provider while the old company resolves the complaint.

Renters often face confusion about whether they are allowed to switch suppliers, especially if they have fallen into arrears. If you are a tenant and you pay the energy supplier directly, you have the right to choose your provider. A landlord or letting agent cannot legally stop you from changing suppliers, even if there is a clause in your tenancy agreement that claims otherwise. The debt belongs to the account holder, not the property.

If you are moving house, you do not take your energy debt to the new property's account automatically, but you still owe the money to the supplier. You must provide a final meter reading on the day you move out. The supplier will send a final bill to your new address. If you do not pay it, they can pass the debt to a collection agency, which will affect your credit rating.

What to do if your supplier blocks the switch

If your credit meter debt is older than 28 days, or your prepayment debt is over £500 per fuel, your current supplier will block the transfer. This can be highly stressful, especially if you had found a much cheaper tariff. The first step is to contact your current supplier and explain your financial situation. You will need to come to an arrangement, such as a structured repayment plan, before they will lift the block.

When you speak to your supplier, they will likely ask for details about your income and regular outgoings. This helps them calculate a fair weekly or monthly repayment amount. Once a plan is agreed and you show you can stick to it, you may be able to negotiate a switch, though this is at the supplier's discretion if the debt remains large.

If you have a standard credit meter and you ignore the debt, the situation can escalate. If your debt exceeds £200 per fuel for more than three months, suppliers have the right to forcibly install a prepayment meter to recover the funds. However, strict rules mean they must use this as an absolute last resort. Before taking this step, the supplier must make at least 10 contact attempts and conduct a home welfare visit to check if you are vulnerable.

Help and support for energy debt

You are not the first person to fall behind on payments, and there is a wide range of support available to help you manage energy debt. The scale of the problem is significant across the UK. To tackle the estimated £4,400,000,000 of historic debt in the energy system, Ofgem is advancing a Debt Relief Scheme. The first phase of this scheme proposes writing off up to £500,000,000 of debt, which could help around 195,000 vulnerable customers clear their balances.

Never suffer alone or ignore letters from your supplier. Getting help as soon as you know you are struggling is the best way to prevent the debt from growing and to protect your well-being. Suppliers are legally required to help you if you tell them you cannot pay.

Should you switch suppliers if you are in debt?