Struggling to pay your business energy bills? Your options

What to do first

If you cannot pay a business energy bill in full, contact the supplier before the due date, not after. Ofgem's good-practice guidance for non-domestic suppliers says disconnection should be a last resort and that suppliers should look at your ability to pay, consider longer payment timescales and make reasonable adjustments. That is guidance rather than a legal rule, but it sets out what you can reasonably ask for.

Citizens Advice suggests you usually have around 28 days to pay a bill, but check your own contract for the exact deadline. Ring or write, say honestly what you can afford, and ask in writing for a repayment plan.

Step 1: check the bill is right

Before agreeing to pay, make sure the amount is correct. Errors are a common cause of "debt".

• Compare the meter reading on the bill with the real meter. An estimated bill can be well off. See how to correct an estimated bill.
• If you are a microbusiness, you can only be billed for energy used in the last 12 months. Citizens Advice says to complain if you are billed for older usage. More in back billing.
• Look for the wrong tariff. If you are on a deemed or out-of-contract rate, the same use can cost much more than on a fixed deal.

If part of the bill is disputed, tell the supplier which part, pay the undisputed amount and keep a record. Our guide to disputing a high bill covers the steps.

Step 2: ask for a payment plan

A payment plan spreads arrears over several months alongside your ongoing bills. Suppliers set their own terms and we have not checked any supplier's policy, so ask what they offer and be realistic. A plan you break is worse than a smaller one you keep.

Worked example

A salon has £3,600 of arrears and current electricity of about £300 a month. It can afford £700 a month in total.

• Room for arrears: £700 − £300 = £400 a month.
• Time to clear: £3,600 ÷ £400 = 9 months.

Offering £400 a month towards the arrears, on top of paying current bills, is a clear proposal a supplier can say yes to. If the supplier asks for £600 a month, you can explain why that is not affordable and show your sums. See payment plans for business energy for more.

Ask whether the supplier will pause late-payment charges while the plan is running, and get the agreed plan in writing or by email. Late charges are explained in late payment charges.

Step 3: check you are on the right tariff

Ofgem's guidance says suppliers should check whether a customer is on the best available tariff, for example a fixed rather than out-of-contract rate. Out-of-contract rates can be a big part of a bill. Citizens Advice says switching away from a rollover, end-of-contract or deemed tariff usually involves no fee or notice period, but you can usually only switch if you are not in debt to the supplier. Read switching when you owe money and use the out-of-contract cost calculator to see what it is costing.

Step 4: get free debt advice

Ofgem expects suppliers to point businesses to specialist advice, including Business Debtline and the Citizens Advice small business debt pages. Citizens Advice points business owners to the Business Debtline website at businessdebtline.org for free advice. Citizens Advice's consumer service can also help. If you are a sole trader, your business debts and personal finances may be linked, so advice is worth taking early. Energy debt is not the only bill you may be juggling, and an adviser can help you rank them.

Disconnection rules and other help

What suppliers can and cannot do

Disconnection is possible but heavily regulated. Ofgem's June 2026 guidance notes that under the Gas Act 1986 and Electricity Act 1989 a supplier must give at least 7 days' written notice before disconnection or installing a prepayment meter, and that notice can only be given 28 days after a written demand for payment. Citizens Advice adds that if you refuse entry, the supplier needs a court warrant, should tell you at least 21 days before applying, and you can join the hearing (Citizens Advice last reviewed that page in September 2022). Full detail is in business energy disconnection and reconnection.

Never ignore letters or calls from the supplier or a debt collector. Most of the options above depend on you staying in contact. Some firms use third-party collectors, who are expected by Ofgem to follow the same approach and avoid threatening language.

Is there government help?

There is no general business energy support scheme in 2026. The Energy Bills Discount Scheme ended on 31 March 2024. See government help with business energy bills for what exists, which is aimed at specific industries.

Reduce the bill going forward

Once arrears are under control, tackle the cause. Start with simple ways to save energy, check for any security deposit you might need to provide, and plan your renewal date carefully, since rollover prices can jump.

Mistakes that make things worse

• Going silent. Suppliers are expected to explain their collections process and to contact you in line with it. Replying keeps you in the conversation; ignoring letters speeds up the formal steps.
• Agreeing to a plan you cannot keep. Work from your real cash flow, including quiet months. Seasonal trades such as holiday lets or seaside cafés can ask for smaller payments in winter and larger ones in summer.
• Paying only the arrears. If you stop paying the current bill, the debt grows again. A plan normally covers both.
• Agreeing a new contract in a hurry. There is no cooling-off period on business energy contracts, so read the terms before you sign.
• Ignoring a security deposit request. A supplier may ask for one if it sees you as a credit risk, and you can ask how it was worked out.

If your supplier will not help

Make a formal complaint to the supplier, in writing, and keep copies. If you are a micro or small business and the complaint is unresolved after eight weeks, or you have a deadlock letter, you can take it to the Energy Ombudsman, within 12 months. The Ombudsman can look at how you were treated, for example if a supplier ignored a reasonable payment offer. See energy disputes and the Ombudsman.

Next steps

1. Check the latest bill against your meter.
2. Call or email your supplier before the due date and ask for a payment plan.
3. Work out what you can pay each month and put it in writing.
4. Contact Business Debtline or Citizens Advice for free help.
5. Complain formally if you are treated unfairly, and escalate to the Energy Ombudsman after eight weeks.