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The site was last updated on 1st May 2008.

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England    Consumer affairs    Electricity supply  

Consumer affairs - In England

 

 


Electricity supply

This information applies to England, Wales and Scotland



Who can supply electricity

There are many companies who can supply you with electricity.

You can find a list of companies which supply electricity in your area on the website of energywatch, the gas and electricity consumer council, at: www.energywatch.org.uk.

All electricity suppliers must have a licence from the Office of Gas and Electricity Markets (Ofgem). One of the licence conditions is that an electricity supplier must produce codes of practice on:-

  • procedures for complaints
  • payment of bills, arrangements for dealing with arrears and prepayment meters
  • site access procedures
  • energy efficiency advice
  • services for older, disabled and chronically sick people.

Although these codes are not legally binding, the electricity company should stick to them. You can ask your electricity company for a copy of the codes. It could be useful to know what the codes say if you have a disagreement with the electricity company, for example about an electricity bill or changing a supplier. If an electricity company doesn't stick to the codes, you should report them to energywatch (see under heading Useful organisations).

Who has a right to an electricity supply

In most circumstances, an electricity company must agree to supply you with electricity if you ask to sign up to a contract.

They can refuse to supply electricity if:

  • the wiring in your house is in a dangerous condition
  • the supply has been disconnected and there is no obligation to reconnect
  • security has been requested and not paid (see under heading Moving home or changing electricity supplier)
  • a prepayment meter has been refused.

If you are refused a supply of electricity, get advice from energywatch (see under heading Useful organisations).

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Choosing an electricity supplier

You can change your electricity supplier if you want to. If you are thinking about changing to another supplier, bear in mind that prices, policies and services offered by the different suppliers will vary. You should carefully check the information and contracts of the different suppliers and compare these to your current electricity supplier to make sure that you choose the best deal for your needs.

You can check the most up-to-date fuel prices on the energywatch website at: www.energywatch.org.uk. You can also call energywatch for a price comparison fact sheet, or use online price comparison websites which make it easy to compare and switch suppliers. You can find a list of the price comparison websites on the energywatch website.

Dual fuel offers

Dual fuel is the supply of gas and electricity by the same supplier. Most gas and electricity suppliers are licensed to supply customers with both fuels. Some electricity suppliers will supply both fuels under one contract, while others will give one contract for gas and another for electricity.

Suppliers who make dual offers will often give a discount off the total bill.

For more information about how to find the best fuel deal for you, visit the energwatch website at: www.energwatch.org.uk.

For information about gas supply, see Gas supply.

Guidelines a supplier must follow when they sell you electricity

When a gas company sells you electricity, it must stick to certain standards.

Most suppliers have signed up to a code of practice produced by the Association of Energy Suppliers (AES). Sales agents must follow the guidelines in the code. The guidelines cover all methods of selling electricity, including door-to-door sales (doorstep selling) and telephone sales (distance selling). Some of the guidelines included in the code of practice are:

  • all advertising and promotion of electricity companies must be accurate, fair and reasonable. This means that sales agents, adverts and publicity materials can't give you false or misleading information
  • sales agents must only call at your home between 9.00am and 8.00pm, unless you've specifically asked them to call outside these times. If they are visiting sheltered accommodation, they must contact the warden first
  • sales agents must identify themselves by producing ID without being asked
  • the sales agent must make sure you have understood the contract, including any right to cancel (see below) before you sign
  • the sales agent must make sure that the person signing the contract is responsible for paying the electricity bill
  • you must be given a copy of the contract.

If the sales agent doesn't follow the guidelines, you may be entitled to compensation. If you have a complaint about the way you have been sold electricity, you should take this up first with the company concerned. Ask them for a copy of the code of practice and use the information in this to help you make your complaint.

If you can't reach an agreement with the electricity company, you can refer the complaint to energywatch –see under heading Useful organisations. If energywatch can't resolve the complaint they may refer it on to Ofgem.

Cancellation rights

If you sign a contract to buy electricity from someone who has called at your home, you may have the right to cancel the contract if you change your mind. You will be able to cancel the contract as long as:

  • you cancel within seven days of signing it and,
  • the sales agent called uninvited and you didn't ask them to call at your home.

For more information about your rights to cancel a contract signed in your home, see Services bought in a doorstep-sale in Buying services – your rights.

If you sign a contract to buy electricity over the phone, you may also have the right to change your mind.

For more information about your rights to cancel a contract you've entered into over the phone, see Services bought by distance sale in Buying services – your rights.

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Moving home or changing electricity supplier

When you move to a new home, you should tell the new electricity supplier the date on which you wish to take over the supply.The electricity supplier may be your current electricity supplier, or you may wish to change to a different supplier when you move.You may have to change if your current electricity supplier does not supply electricity in the area to which you have moved.

If you want to cancel your contract with your current electricity supplier, you have to give them at least two days notice. If you don't do this, they can continue to charge you for electricity, even if you have moved out of the property.

Your electricity supplier can also object to you changing to another supplier in other circumstances, for example, if you are in arrears.

You should cancel any standing orders or direct debits once you have paid the final bill to your current electricity supplier.

Your current and new electricity suppliers will want a final meter reading taken on the day you change electricity suppliers. Some electricity suppliers will send a meter reader and may make a charge for this, while others will ask you to read the meter and send the reading to them. In either case, you should keep a note of the meter reading yourself in case there is a dispute later.

You must give your new electricity supplier the supply number for the meter at your home.The supply number is an identification number for the meter and is shown on the bill relating to the meter.If you are moving home, you will have to ask the present occupiers for the supply number.

If the supply of electricity has to be reconnected, the electricity supplier may make a charge for reconnection.If you think the reconnection charge is unreasonable, you can refer the matter to energywatch (see under heading Complaints) who can decide whether a charge should be made and, if so, how much.

Getting advice about changing to a new electricity supplier

For information and advice about changing to a new electricity supplier, contact energywatch – see under heading Useful organisations. Energywatch can provide advice on what to check if you want to change suppliers and a list of local electricity suppliers. You can also get price comparison factsheets.

Changing supplier when you have a debt

If you have an electricity debt, you may not be accepted by a new supplier.

If you've owed the money for less than 28 days, for example, you haven't paid a recent bill, you will still be able to change supplier. The money you owe will be transferred to your new supplier.

You will also be allowed to change supplier if you use a prepayment meter and have a debt of up to £100. Your debt will be transferred to your new supplier. For more information about changing your supplier when you have a debt, contact energywatch – see under heading Useful organisations.

Providing security

Most customers will have a credit meter (see below) and receive regular bills.However, in some circumstances the electricity supplier may refuse to supply until you have provided suitable security.The electricity supplier should first ask you to agree to a prepayment meter being fitted (see below).Only if you refuse a prepayment meter should the electricity supplier ask for alternative security, but will normally ask you to do one of the following:-

  • join a regular payment plan (see under heading Electricity bills)
  • pay by direct debit (see under heading Electricity bills)
  • provide a guarantor (see below)
  • make a cash deposit (see below).

The most common circumstances where an electricity supplier may require security are where you are a new customer and cannot provide proof of your identity or previous address or have a poor payment record at your present or last address.

Guarantors

If you provide a guarantor, the guarantor will be legally responsible for paying your electricity bills if you do not pay. Before signing as a guarantor, you should check the terms of the contract with the supplier and get an estimate of how much the bills are likely to be.

Cash deposits

The electricity supplier can only request a reasonable amount as a security deposit.Guidance is given in the licence conditions on the amount a deposit should be.It is usually up to one and a half times the average amount of a quarterly bill.

If you think that the amount of the deposit is unreasonable, for example, because you only use a small amount of electricity, you should take the matter up with the electricity supplier.If you are still not satisfied you can refer the matter to energywatch (see under heading Complaints), who will look at he circumstances and determine how much the deposit should be.

If you have problems getting an electricity supply, or it is going to be stopped, consult an experienced adviser, for example, a Citizens Advice Bureau. To search for details of your nearest CAB, including those that can give advice by e-mail, click on nearest CAB.

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Meters

There are various different meters which fall into two main types:-

  • credit or quarterly meters where you use the electricity and pay for it later
  • prepayment meters, where you pay in advance for your electricity supply.

Credit meters

Most customers will have a credit meter and will receive bills four times a year.This is known as quarterly billing.The electricity supplier will call to read the meter at regular intervals or contact the customer and ask them to read the meter and pass on the reading. The meter must be read at least once every two years. The customer can pay the bill in a number of ways (see under heading Electricity bills).

Prepayment meters

If you have difficulty paying for your electricity, you can ask for a prepayment meter to be installed. If you're in arrears, you should be offered a prepayment meter as an alternative to disconnection.

You can ask for a prepayment meter if you're not in arrears, but you may have to wait until one becomes available.

In most areas, electronic prepayment meters are the only available prepayment meter option.

The main types of prepayment meters are:

  • token meters
  • key meters
  • card meters
  • smart card meters.

The electricity supplier will give you a list of the places you can get the card, token or key charged, which may include vending machines. The meter will record the amount of electricity used.

The advantages of using a prepayment meter are:

  • it can be a useful way to budget if you're on a low income
  • it can be used to pay off arrears as an alternative to disconnection.

There are several disadvantages to using a prepayment meter. These include:

  • you'll usually pay more for your electricity than if you had a credit meter. Prepayment meters are normally the most expensive way to pay for electricity
  • if you can't afford to buy tokens or recharge your card or key, you won't have any electricity
  • you may have to pay transport costs to get to the nearest charging point
  • the meter can be set to recover arrears. This means you'll have to pay for using electricity and for your arrears at the same time
  • you'll have to pay more towards the arrears when you're using more electricity.

Meter readings

When the electricity supplier comes to read the meter you should, if possible, read the meter yourself to confirm the accuracy of the reading.

You must allow access to the meter whenever this is needed by the electricity supplier.For example, if you build kitchen cupboards around the meter and the cupboards have to be dismantled for the electricity supplier to replace the meter, you will be responsible for the cost of replacing the cupboards.

If the electricity supplier has been unable to gain access to read the meter they may leave a card for you to fill in with your own reading, or contact you to ask you for the meter reading.

A customer who is disabled, chronically sick or of pensionable age can ask the electricity supplier to read their meter every three months if neither they, nor anyone else in the household, can do so.However, the bill will be estimated if the electricity supplier cannot gain access.

Under the electricity supplier’s code of practice, a customer who is disabled, chronically sick or of pensionable age can get information and advice about:-

  • special controls or adaptors for prepayment meters or electricity appliances owned by the electricity supplier
  • resetting of the meter if it is owned by the electricity supplier and it is in a position which makes it difficult for the customer to read it.

Information and advice, and resiting of the meter, must be provided free of charge. They may also be able to provide special controls or adaptors for the meter or appliances, free of charge.

For more information about services for customers who are disabled, chronically sick or of pensionable age, see under heading Free services for older people, disabled people and people with long-term ill-health.

If you think the meter reading is wrong

If you believe that the meter reading given on your bill is wrong, you should take your own reading.If this shows that the meter has been misread, you should inform the electricity supplier of the correct reading and a revised bill will be sent.If your own reading shows that the meter was read correctly, the meter may be faulty and the matter should be reported to the electricity supplier.

If you have had an estimated reading, you should read the meter yourself.You can either contact the electricity supplier on the telephone number on the bill, or return the bill, to give your meter reading.An adjusted bill will then be sent.

Tampering with a meter

The electricity supplier may disconnect your electricity supply by removing the meter if it has sufficient evidence that you have tampered with your meter.To prevent disconnection, you must convince the electricity supplier you did not tamper with the meter, and took proper care of the meter.

If you are suspected of tampering with a meter you should seek the help of an experienced adviser, for example, a Citizens Advice Bureau.To search for details of your nearest CAB, including those that can give advice by email, click on nearest CAB.

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Electricity bills

Electricity bills will be sent to you at regular intervals.

If you are visually or hearing impaired, your electricity supplier can provide bills in a suitable format for you, for example in Braille or via textphone.

In some circumstances, you can arrange for your bills to be sent to someone else, like a carer, so they can help you read and check them – see under heading Free services for older people, disabled people and people with long-term ill health.

Standing charge

The standing charge is a fixed daily amount charged to electricity users, regardless of how much electricity is consumed. There are different charges for credit and prepayment meters.

Your electricity supplier may offer you the option of not paying a standing charge, but paying a slightly higher rate for the electricity used instead. You would need to work out, from your bills, whether this option would be cheaper for you.

Paying the electricity bill

Electricity suppliers must provide a variety of ways for you to pay your bill if you have a credit meter.The minimum requirement is that an electricity supplier must allow you to pay by cash, cheque, postal order or monthly direct debit.Your electricity supplier may also offer other payment methods.Some electricity suppliers will give a discount if you pay by a particular method.

The electricity supplier will normally allow the bill to be paid:-

  • by posting a cheque, postal order, credit or debit card details to the electricity supplier
  • at any post office, in cash, saving stamps or by cheque
  • at your bank.A charge may be made if the bill is paid in cash
  • at another bank.A charge may be made, although some electricity suppliers have set up free payment schemes
  • in cash at PayPoints, which are situated in local outlets such as supermarkets, service stations and shops.

If you cannot afford to pay the electricity bill in full when it arrives you may wish to consider:-

  • using one of the payment methods listed below to spread the cost and help you avoid arrears
  • having a prepayment meter installed (see under heading Meters)
  • buying electricity saving stamps regularly to pay some or all of your bill when it arrives.Electricity savings stamps can only be bought from post offices and can be used to pay electricity bills.They cannot be used to pay for repairs, services or appliances.Not all electricity suppliers operate a stamp scheme
  • getting advice on how to reduce your electricity consumption (see under heading Saving money on electricity bills.

If an electricity company has failed to send out a bill, they aren't allowed to bill you for any amount which dates back longer than a year.

Regular payment plans

You should ask your electricity supplier for information about the payment schemes which are available.Some electricity suppliers offer a discount to customers who pay their bills by direct debit, standing order or by a flexible payment or budget scheme.You should check carefully the terms of the payment schemes your electricity supplier offers.The most common regular payment plans are:-

  • direct debit or standing order (see below)
  • budget schemes with regular fixed payments (see below)
  • flexible payments scheme (see below).

Direct debit, standing order and fixed payment budget schemes

Your annual use of electricity is estimated, usually based on previous consumption, and you pay this amount by equal instalments throughout the year.

If you use a fixed payment budget scheme, you must pay the agreed amount to the electricity supplier at the specified times, usually weekly, fortnightly or monthly.Depending on the electricity supplier’s scheme, you may be able to make the payments by post to the electricity supplier, at post offices, banks or other outlets.

At the end of the year you may have a balance owing or a credit. Any amount owed will be taken into account when calculating the next year’s instalments or, if large, will usually have to be paid.

Flexible payments scheme

The electricity supplier may offer a flexible payments scheme, which allows you to pay any amount at any time. You may find this is a useful payment option if your income is variable. Check carefully the terms of the scheme, for example, how the payments are worked out and what happens if you build up a credit or go into arrears.

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Saving money on electricity bills

You may be able to reduce your future electricity bills by efficient use of electricity or insulating your home.All electricity suppliers must have a code of practice on using electricity efficiently.If you ask for it, the electricity supplier must also arrange for you to receive free of charge, from a suitably qualified person, advice on:-

  • preventing heat loss from the home
  • choosing electricity heating systems and controls
  • using a electricity heating system efficiently
  • organisations which may be able to give further advice, training and other services
  • sources of possible financial help for any work which would improve the efficient use of electricity.

For more information about energy efficiency and saving money, see.Energy efficiency and saving money.

You can also:

  • visit the Energy Savings Trust Website at: www.est.org.uk
  • contact your local Energy Efficiency Advice Centre on 0800 512 012
  • visit the energywatch website at: www.energywatch.org.uk.

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Arrears and avoiding disconnection

If you have electricity arrears, you risk having your electricity supply cut off. However, it is very unusual to be disconnected if you fail to pay your electricity bills.

If you have electricity arrears, you may also have other debts which need to be dealt with. You should seek the help of an experienced adviser, for example, a Citizens Advice Bureau. To search for details of your nearest CAB, including those that can give advice by e-mail, click on nearest CAB.

An electricity supplier must follow standard licence conditions, one of which sets out how it deals with customers who have difficulty paying. An electricity supplier cannot issue a disconnection notice until at least 28 days after issuing a bill. You must be given at least seven days notice of disconnection. If you can't pay your bill, contact your supplier straight away. You should be offered an arrangement to pay off the arrears at a rate you can afford. If you can't afford to pay off the arrears in this way, they must offer to install a prepayment meter – see under heading Meters.

Some groups of customers may have extra protection from being disconnected. This may apply to you if you:

  • are of pensionable age
  • have long-term ill-health
  • are disabled
  • have severe financial problems.

You can find more information about what steps a supplier must take before disconnecting you on the the energywatch website at: www.energywatch.org.uk.

The Home Heat Helpline offers advice on energy efficiency and fuel debts to low income consumers. The Helpline's advisers can help identify where free energy efficiency measures might be available and can also ensure that vulnerable customers are not at risk of fuel supply disconnection. You can contact the Home Heat Helpline on 0800 33 66 99.

Some energy suppliers have set up independent charitable trusts which give grants to some of their customers to help them pay for electricity arrears. You can also get grants to pay for gas arrears and other household bills.

For more information, visit www.edfenergytrust.org.uk or get the Utility Trusts and Schemes booklet from www.britishgasenergytrust.org.uk.

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Free services for older people, disabled people and people with long-term ill-health

Free services are available from all electricity suppliers to customers who:

  • are of pensionable age or
  • have a disability or
  • are hearing or visually impaired or
  • have long-term ill health.

Services which may be available, depending on your circumstances, include:

  • a service which is more tailored to your needs, for example, you can ask to have your meter readings in Braille, large print or on audio tape
  • moving your meter free of charge to make it more accessible
  • having controls and adaptors provided to make your meter or appliances easier to use
  • advance notice if your electricity supply has to be interrupted
  • arranging for your bills to be sent or copied to someone else, such as a carer, so that they can help you read and check them.

For more information or advice about free services from your electricity supplier, visit the website of engergywatch, the independent watchdog for gas and electricity consumers, at: www.energywatch.org.uk.

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Complaints

If you have a complaint about your electricity supplier, you should first raise it with the electricity supplier, who must have a procedure for dealing with complaints – see under heading Who can supply electricity. You may be entitled to compensation.

If you are dissatisfied with how the electricity company has dealt with your complaint you can take it up with energywatch – see under heading Useful organisations.

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Useful organisations

energywatch

energywatch, the gas and electricity consumer council, is an independent organisation which represents and protects the interests of electricity and gas consumers. It can help with complaints about the supply of electricity and gas.

Tel: 0845 906 0708
RNID Typetalk: 18001 98459 0607 08
Website: www.energywatch.org.uk

The Energy Supply Ombudsman

If you have a complaint about your gas or electricity bill or a problem when you change your supplier, you can make a complaint to the Energy Supply Ombudsman. You must have complained to your gas or electricity supplier first.

Your supplier must me a member of the Energy Supply Ombudsman scheme. You can find a list of scheme members on the Energy Supply Ombudsman website.

You can contact the Energy Supply Ombudsman at:

PO Box 966
Warrington
WA4 9DF

Tel: 0845 055 0760 or 01925 530263
Fax: 0845 055 0765 or 01925 530264
Textphone: 18001 0845 051 1513 or 18001 01925 430886
Email: enquiries@energy-ombudsman.org.uk
Website: www.energy-ombudsman.org.uk.

Office of Gas and Electricity Markets (Ofgem)

Ofgem is an independent regulatory body, set up by the government to monitor and regulate the activities of electricity and gas suppliers. It has the power to make an electricity supplier supply electricity to a particular customer, or not to disconnect an electricity supply. Ofgem also monitors electricity suppliers’ Codes of Practice and seeks to ensure that people with electricity arrears are dealt with fairly, reasonably and sensitively.

Consumer complaints are dealt with by energywatch.

Tel: 0845 906 0708
Website: www.energywatch.org.uk

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