If your business can't pay its energy bill, contact the supplier before it falls further behind. A supplier can disconnect a business supply after at least 7 days' written notice, and that notice can't start until 28 days after a written demand. Most suppliers will give you time to pay if you can cover ongoing use too.
Business customers have fewer debt protections than households. Knowing the rules, and the free help available, puts you in a much stronger position. The rules below are as of 9 October 2026.
Do business customers get the same protection as households?
No. Households have detailed licence rules on debt, repayment plans and prepayment meters. Business customers mostly don't.
Citizens Advice calls this the microbusiness "debt protection gap". In its October 2024 report it pointed out that "suppliers do not have to offer a repayment plan to a customer in debt", and that the fairness rules suppliers follow for business customers don't cover debt and disconnection practices.
What business customers do have is Ofgem's good practice guidance on debt and disconnection. Ofgem first issued it in December 2022 and updated it on 9 June 2026. It is not a binding rule: Ofgem says it "does not set any additional obligations on suppliers outside of existing license conditions". But it sets out what Ofgem expects, so it's useful to quote when you speak to a supplier.
Will my supplier agree a repayment plan?
Usually, if you can show it's realistic. Business Debtline says most suppliers will try to give you time to pay. To get an arrangement, you normally need to show you can pay for your ongoing energy plus something towards the arrears. The supplier will also look at your payment history.
Ofgem's guidance says suppliers should:
- consider your ability to pay, including whether longer payment timescales are appropriate
- tailor payment plans to what you can afford, and consider bespoke plans that fit your business
- check you're on the best tariff for you
- keep early debt letters supportive, not "unnecessarily threatening"
When you call, ask for the arrears or credit team. Have your last few bills, your average monthly use and a figure you can really afford. If your circumstances change, ask to renegotiate rather than missing a payment.
How much notice do I get before disconnection?
The law sets a floor. Under the Gas Act 1986 and the Electricity Act 1989, a supplier must give "a minimum of 7 days written notice ahead of disconnection or prepayment installation". That notice can't be given until 28 days after a written demand for payment. Ofgem says this applies to traditional, smart and AMR meters alike.
In practice you usually get several letters or calls first. Business Debtline notes that contracts often say only 7 days' notice is needed, so don't assume you have longer.
Can they come in to disconnect, or fit a prepayment meter?
If the supplier needs to enter your premises without your agreement, it must get a warrant. In England and Wales that's from a magistrates' court; in Scotland it's a sheriff court. Business Debtline says a warrant lasts up to 28 days from the date it's granted.
You should get a letter with the hearing date. It's worth attending, or joining by video if offered. The court can delay disconnection. Disconnection and reconnection costs can be added to what you owe.
Suppliers don't have to offer a prepayment meter before disconnecting a business supply. If they do switch you to prepayment, Ofgem says you should never be moved without being told and shown how to use it.
What if people live at the premises?
Tell the supplier straight away. Business Debtline says a commercial contract gives you less protection, so ask to be treated as a vulnerable customer if that applies.
Ofgem expects suppliers to check for people living on or attached to the premises. If they find a domestic consumer, especially a vulnerable one, they should pause disconnection. Where someone of pensionable age, disabled or chronically sick lives there, suppliers should "take all reasonable steps to avoid disconnection".
The June 2026 update adds expectations for communal areas of blocks of flats. Residents should be told they aren't responsible for the debt.
Can I switch supplier if I owe money?
Sometimes not. Ofgem says: "Your existing supplier may object to your switch, for example if you owe them money." If that happens, ask the supplier what's needed to clear the objection.
There's one big exception. If you're on a deemed contract, for example after moving into new premises, Business Debtline says the supplier can't stop you switching "for any reason or at any time". Deemed rates are often expensive, so this matters. Our guide to deemed and out-of-contract rates covers how to get off them.
Can a supplier ask for a security deposit?
Yes. Ofgem's guidance says deposits should be reasonable and based on the supplier's risk. It cites up to three months of future energy use as a typical starting point. A deposit asked for before reconnection should also be reasonable and should not unfairly stop you getting reconnected.
If a deposit looks too high, ask how it was worked out and whether it can be paid in stages.
Could I be billed for old energy use?
If you're a microbusiness, suppliers generally can't back-bill you for energy used more than 12 months ago. The exception is where you stopped accurate readings, for example by blocking access to the meter. Our post on microbusiness energy rights explains who counts.
Send your own meter readings regularly, so debt doesn't build up on estimated bills.
Where can I get free help?
- Business Debtline: free debt advice for self-employed people and small businesses, 0800 197 6026 (Monday to Friday, 9am to 8pm, as of October 2026).
- Citizens Advice consumer service: 0808 223 1133. If you're facing disconnection, ask about the Extra Help Unit.
- Energy Ombudsman: if your complaint isn't sorted after 8 weeks, or you get a final response you're unhappy with, eligible businesses can take it to the Energy Ombudsman. See our bill dispute guide.
Business Debtline also says Breathing Space can stop most enforcement action, and most interest and charges, for 60 days. Ask them whether it applies to you.
This is general information, not legal or financial advice.
What to do next
- Call or email your supplier now. Ask for the arrears team and offer a realistic plan.
- Gather your last bills, a recent meter reading and your average monthly use.
- Ask the supplier to put any plan, deposit or notice in writing.
- Tell the supplier if anyone lives at or is attached to the premises.
- Check whether you're on a deemed or out-of-contract rate, and compare prices with our estimator.
- Call Business Debtline for free advice before you agree anything you can't keep up.
- If you get a warrant hearing letter, attend or ask to join by video.