Who pays the energy bill if the previous tenant left debt?

Normally you do not pay a previous tenant's debt just because you moved in. You pay for the energy used from the date you became the occupier. The messy part is proving that date.

What the official guidance covers

Ofgem's change-of-tenancy page for businesses sets out how to notify the supplier and what evidence to give, but it does not spell out who is liable for an earlier occupier's arrears. Citizens Advice's moving guidance likewise warns mainly about being billed for energy used before you arrived. So there is no simple rule to quote here, and you should treat the points below as practical principles rather than legal advice.

Practical principles

• A contract is with a person or company. Debt built up by someone else's business is normally theirs, not yours.
• You are responsible from your move-in date. Energy you use before agreeing a contract can be billed at deemed rates.
• Suppliers sometimes chase the wrong person. This tends to happen when records are slow to update or no one reported the previous tenant leaving.

Protect yourself before and on moving day

1. Ask the landlord or agent who supplies the premises and whether any energy account is in their name.
2. Photograph the meter readings with the date on your first day.
3. Tell the supplier straight away and send proof, such as a lease, completion letter or business rates bill. The supplier should respond within 10 working days.
4. Ask for written confirmation of the opening reading and the date your account began.

Our guide to finding out who supplies your premises helps with the first step.

A worked example

You take a lease on 1 March and read the electricity meter at 80,500 kWh. A bill arrives showing usage from 80,000 kWh. That 500 kWh belongs to the earlier period. At an illustrative 27p/kWh, it is 500 × £0.27 = £135 that you can dispute with your dated photo. A separate balance for unpaid bills in the previous tenant's name should not be added to your account.

If a supplier asks you to pay old debt

1. Ask in writing what the amount is for, the dates it covers and the account holder's name.
2. Reply with your move-in date and evidence.
3. Use the supplier's complaints process if it will not remove the charge.
4. If it is not resolved after 8 weeks, or you get a deadlock letter earlier, the Energy Ombudsman can look at it if you are a micro or small business. See our ombudsman guide.

Be careful if the landlord holds the energy account and recharges you. Then your debt, or the landlord's, depends on your lease. Read the landlord guide and have a solicitor check the wording.

Next steps

If a bill is already in your hands, start with disputing a business energy bill. If not, the best fix is to tell the supplier early, as covered in telling your supplier when you move.