Can my supplier disconnect my business for non-payment?

The honest answer

Citizens Advice points out that domestic suppliers must offer affordable repayment plans and face strict limits on disconnecting homes, while non-domestic suppliers have no equivalent requirements. That means a business in arrears is more exposed. But disconnection isn't instant, and there is guidance on how suppliers should behave.

What the process usually looks like

Business Debtline, writing about Scotland, says a contract may require only seven days' notice before disconnection, though you usually get several letters or calls first. A supplier may need court permission to enter your premises to disconnect. In Scotland that is a warrant from the sheriff court, lasting up to 28 days, and attending the hearing is advised. We have not verified the exact court steps for England and Wales, so get local advice.

Protections you do have

• Ofgem's good-practice guidance for non-domestic suppliers covers debt collection, disconnection paths, reasonable charges, site visits and compensation if a disconnection happens in error. It is good practice rather than a licence condition.
• Ofgem has said that unreasonable conduct in debt and disconnection could breach its Standards of Conduct, which were extended from microbusinesses to business customers of all sizes from 1 July 2024.
• You can complain, and microbusinesses and small businesses can use the Energy Ombudsman after 8 weeks or with a deadlock letter.

What to do if you are behind

1. Contact the supplier's debt or arrears team at once and explain.
2. Ask for a payment plan; see payment plans for business energy.
3. Keep paying current usage if you can.
4. Put everything in writing.
5. Get free debt advice; see if you cannot pay your business energy bills.

If a disconnection is a mistake, for example you paid or the bill is under dispute, tell the supplier immediately and escalate your complaint. See disputing a high bill.

After disconnection

Reconnection normally needs the debt to be paid or an agreement to be reached, and there may be charges; ask the supplier for its charges in writing before you agree. Read disconnection and reconnection.

Example

A bakery owes £3,200 over four months. Offering £800 up front plus £400 a month, on top of current bills, is likelier to be accepted than saying nothing. The figures are illustrative and the supplier decides.

Warning signs and when to act

• Reminder letters that mention a final notice or a date.
• A letter about a court hearing or warrant.
• Calls from a debt collector instead of the supplier.

Any of these is a prompt to call the supplier that day, and to speak to a free adviser. If you live at the premises or trade from home, tell the supplier, as different rules may apply.

Why acting early matters

Every extra month of arrears makes a payment plan harder to agree and makes the supplier less flexible. Calling at the first missed payment is far better than waiting for a final notice.