Your small business can't afford its energy bills

If you’re struggling to afford your energy bills, there’s help you can get as a microbusiness. Check if your business is a microbusiness.

All businesses should be able get help with energy bills from the government as part of the Energy Bill Relief Scheme.

There are other steps you can take if you're still finding it hard to pay your microbusiness's energy bills.

What you should do depends on if:

• you're already in debt to your supplier
• you've been sent a bill you can't afford
• you're regularly struggling to pay your bills

The Energy Bill Relief Scheme

The scheme will help businesses with energy costs from 1 October 2022 to 31 March 2023. You don’t need to apply to the scheme - the discount will automatically be added to your bills.

The scheme applies to all non-domestic customers, including if you’re on a:

• fixed contract that was agreed on or after 1 April 2022

• ‘deemed’ or ‘out-of-contract’ contract

• variable contract

• flexible purchase or similar contract

You can check how the scheme applies to your business on GOV.UK.

If you're in debt to your energy supplier

If you’re struggling to afford your gas and electricity bills, contact your supplier to discuss ways to pay what you owe them.

Your supplier should help you come to a solution. You should try to negotiate a deal that works for both of you.

It's important to act quickly - your energy supply could be disconnected if you don't make arrangements to deal with the debt. Your supplier might have to get permission from a court before they can enter your property to disconnect your supply. If this happens you'll get a letter telling you when the court hearing is.

If you don’t try to negotiate with your supplier, they might threaten to disconnect you. If you're disconnected, you'll normally have a disconnection fee added to the money you owe. You'll need to pay another fee if you're reconnected. 

If you’ve been told you’ll be disconnected

If you haven’t paid a bill, your supplier might say they're going to disconnect your supply if you don't pay the bill. You’ll usually have 28 days to pay your bill. Check your contract to see exactly how long you get to pay and when you’ll be classed as being in debt.

If you don’t pay your debt within the time allowed, your supplier usually only has to give you 7 days notice before your supply is disconnected. But it’s likely your supplier will contact you by letter or phone before it gets to that stage. You should speak to your supplier straight away and try to arrange to pay off the debt. If you don’t give your supplier permission to enter your property to disconnect your supply, they’ll need to get permission from a court. If this happens you'll get a letter telling you when the court hearing is.

If you’ve already been told your supply will be disconnected, contact the Citizens Advice consumer helpline.

If you can't afford to pay a bill

If you think the bill is wrong you should challenge it - call your supplier and ask how it's been calculated.

If the bill is right but you can't pay it, ask if you can arrange a payment plan. Work out a budget before you call so you know you can afford the payments.

If you think you've been overcharged

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

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

If you’re on a deemed contract or an out of contract tariff it’s worth switching - these are usually the most expensive tariffs. 

If you moved into new premises and didn’t agree a new contract you’ll usually be on a deemed contract. 

If your original contract ended but the supplier kept supplying your energy you might be on an out of contract tariff. This happens when your original contract doesn’t say what will happen when the contract ends, or doesn’t have an automatic renewal process.

It’s best to compare prices and agree to a new contract as soon as you take on new premises, or near your current contract’s end date, to get a better deal.

Check if you can switch to a different energy supplier.

Make sure you're being billed accurately

If your supplier is estimating your bills you might be paying more than you need to each month.

Take regular meter readings and send them to your supplier. Set up a monthly reminder on your phone or calendar so you don't forget.

It's worth asking if your supplier can take other steps to keep your bills accurate - for example, by giving you a smart meter.

Make your business energy efficient

There are ways to reduce how much electricity and gas you use - for example, you can:

• switch off computers and other equipment overnight if they aren't being used
• use energy efficient light bulbs
• make sure your premises are insulated against drafts
• only use as much hot water as you need and fix any leaking hot taps

Contacting your supplier about a problem

If you’re having a problem with your energy supply, call or use webchat to contact your supplier straight away. You can get their contact details from their website.

Tell them what’s happening, and what you want them to do about it. They might be able to sort it out then and there. You should note down the:

• date and time you get in touch

• person you speak to

• problem you talk about

If your supplier doesn't solve your problem while you're on the phone or webchat, send them an email or letter repeating what you said. This means you’ll have a record of your conversation with your supplier.

When you write to your supplier include your account number and any case reference numbers you have. This makes it quicker and easier to sort out your problem.

Making a complaint

The first thing you should do is gather any supporting evidence. What you’ll need depends on your issue - for example you could:

• take photos of a faulty meter

• get together copies of unusual bills

• gather notes from phone calls you’ve had

• look for emails from your supplier about the problem

You’ll also need details of your complaint and your energy account number to hand. You can find this on a recent bill.

When you’re ready, you can complain to your supplier over the phone, or in writing by email or post.

Look online for your suppliers ‘complaints procedure’ - this should be listed on their website, and includes contact details for complaints.

What happens next

Your supplier will get in touch with you if they need any more details about your complaint.

They should send you a ‘decision letter’ or ‘letter of deadlock’ within 8 weeks. This explains how they’ll deal with your complaint.

Complaining to the energy ombudsman

You can complain to the energy ombudsman after complaining to your supplier if you:

• have a letter of deadlock and aren’t happy with the decision

• didn’t get a decision letter or letter of deadlock within 8 weeks

If you’ve had a deadlock letter you can complain to the ombudsman within 12 months of getting it. If you didn’t get a deadlock letter you might be able to complain to the ombudsman after more than 12 months.

You can complain to the ombudsman on the Ombudsman Services website.

If you need more help

If you need more advice about dealing with your energy bills, you can contact your local Citizens Advice Bureau or Advice Direct Scotland's energy advice service. 

If you’re finding things difficult

Your mental health is as important as your physical health. You should talk to your GP if your money problems are affecting your mental health. 

You can also get help on the Breathing Space website.

If you need to speak to someone right now you can call the Samaritans for free.

Samaritans

Helpline: 116 123 (Monday to Sunday at any time)

Welsh Language Line: 0808 164 0123 (Monday to Sunday 7pm to 11pm)

Shout

You can also text 'SHOUT' to 85258 to start a conversation with a trained Shout 85258 volunteer. Texts are free, anonymous and confidential from anywhere in the UK.

If you think it's an emergency

If you need support you can call NHS 24 on 111, the Mental Health Hub is open 24/7.