Can I get a payment plan if I can't pay my energy bill?

Is a payment plan a right?

For households, suppliers must offer affordable repayment plans. Citizens Advice notes that non-domestic suppliers have no equivalent requirement. So a plan is something you negotiate. Business Debtline says suppliers usually allow time to pay, provided you show you can cover current fuel plus a contribution to the arrears, and they will usually review your payment history.

How to ask

1. Act early. Contact the arrears or collections team as soon as you know you'll miss a payment.
2. Know your numbers. List income, outgoings and what you can pay each month.
3. Offer something realistic. A plan you break is worse than a smaller one you keep.
4. Ask for it in writing, including the amount, dates and what happens if you miss one.
5. Ask to revisit it in writing if your circumstances change.

Worked example

A gym owes £2,400 and its monthly gas and electricity bill is £600. It offers £1,000 now, then £350 a month on top of the £600 bill. Remaining debt after the lump sum is £1,400, so 1,400 ÷ 350 = 4 monthly payments. The supplier has a clear end date. These figures are made up.

If the supplier refuses

• Ask for the reason and whether a smaller deposit or other arrangement is possible.
• Ofgem's good-practice guidance asks non-domestic suppliers to help businesses in difficulty, but it isn't a licence condition.
• Complain formally; micro and small businesses can then use the Energy Ombudsman after 8 weeks or with a deadlock letter.

Where to get free help

Business Debtline gives free advice to people with business debts. Citizens Advice also helps small businesses. If your supplier has threatened to cut you off, read whether your supplier can disconnect you.

Don't ignore letters or switch just to escape debt. A supplier may object to a switch while money is owed; see switching when you owe money.

What happens if you miss a payment

Tell the supplier before the date, not after. Missing a payment without warning can lead the supplier to treat the plan as broken and resume collection. Ask in writing whether it will accept a revised amount, and keep paying current usage in full so the debt does not grow.

Ofgem's good-practice guidance also asks suppliers to be clear about their collections process, so you can ask them to explain the next steps in writing.

Will a plan add charges?

It can. Some suppliers keep adding late-payment charges or interest while arrears are outstanding, under their terms and conditions or the late-payment law for business debts. Ask in writing whether any fees or interest will be added while you keep to the plan, and whether they will be waived if you complete it. See late payment charges.

Do you need to prove hardship?

Expect to share evidence: bank statements, a cash-flow forecast or accounts. Suppliers want to see you can afford the plan, so being open at the start tends to produce a better result.

Getting it in writing

Ask the supplier to confirm the plan by email: total owed, instalment, dates and what counts as a breach. A written plan gives you something to rely on if a later letter or call contradicts it.

Next steps

Review cannot pay business energy bills and how to pay your business energy bills.