Energy Arrears? How to Stop Your Supplier Taking You to Court (UK Guide)

Let’s get straight to the point: owing money on energy bills can be stressful, but ignoring it won’t make it go away.

With UK energy debt reaching record highs, suppliers are becoming increasingly tough, and court threats, such as County Court Judgments (CCJs), are on the rise.

The good news? You have rights, and there are proven ways to prevent your supplier from escalating your issue. Here’s how to stay in control, protect your credit score, and avoid court even if you’re months behind.

Why Energy Suppliers Threaten Court Action

Energy debt differs from other debts. Suppliers can:

Apply for County Court Judgments (CCJs) if you owe significant arrears and ignore letters.
Send bailiffs to recover debt via High Court enforcement (for CCJs between £600 and £5000).
Add court fees to your existing debt.

However, here’s what they might not have mentioned: court action is a last resort. Suppliers must follow Ofgem’s rules and offer support first. Most court threats will disappear if you act promptly and are aware of your rights.

Step 1: Don’t Panic - Get Your Facts Straight

Before you do anything:

Check your balance. Log in to your online account or contact your supplier. If you notice any errors, dispute them straight away.
Gather evidence. Keep copies of bills, payment attempts, and any proof of financial hardship (e.g., redundancy notices).
Know your timeline. Suppliers must provide you with notice and an opportunity to respond before taking court action. Make the most of this time.

Real Example:

One of our community members ignored a £450 bill, thinking it was an error. By the third month, she was facing the threat of a County Court Judgement. After sharing her redundancy letter, her supplier put the debt on hold for six months.

Step 2: Contact Your Supplier - The RIGHT Way

Ofgem expects suppliers to assist you if you’re struggling. The way you approach them is crucial:

Do:

Write/email ASAP - say you’re seeking a “repayment plan” or “energy support.”
Explain your situation honestly - Ofgem rules require suppliers to consider your circumstances and work out an affordable repayment plan.
Offer what you can afford - Even if you can only afford a small amount, make sure you are clear and provide evidence of your income and essential expenses using an income and expenditure form. Suppliers are expected to accept affordable offers, but there is no legal minimum amount required.

Don’t:

Ignore letters or emails. Silence = guaranteed escalation.
Discuss your situation by phone unless you can record calls.
Agree to unaffordable plans. You set the terms based on what you can genuinely afford.

Step 3: Negotiate a Payment Plan That Works

Ofgem asks suppliers to come up with practical plans that consider what you can afford.

Calculate your budget using The Real Debt Guy Budget Planner. Use this free tool to gain a clear understanding of your finances and gather the necessary information for your supplier.
Submit a simple income and expenditure breakdown to show what’s affordable.
Ask for a review if your circumstances change.

TRDG tip:

If your supplier refuses your offer or pressures you into unaffordable payments, file a complaint and contact the Energy Ombudsman. Ofgem expects suppliers to suspend collections if you truly cannot pay anything at all, particularly if you are experiencing negative income or are in a vulnerable situation.

Step 4: Know Your Rights on Prepayment Meters & Bailiffs

New Ofgem rules (2023–2024) ban the forced installation of prepayment meters for vulnerable people, including those aged 75 or older or those with young children at home.

Claim “high risk” status if you’re vulnerable (age, health, children).
Demand a welfare visit before any meter installation.
If bailiffs visit, show them your complaint reference number. Most will leave if you have an active dispute.

Step 5: Explore Debt Relief Options

If repayments are impossible, don’t try to figure it all out on your own. The Real Debt Guy is here to help you. We can guide you through your options and help you find the best way forward for your situation.

For personalised support and guidance, visit our I Need Help With Debt page. This resource clearly explains your options and offers ways to get the assistance you need.

And if you genuinely can’t pay anything at all, Ofgem’s Good Practice Guidance (2022) is clear:

“We consider it good practice to pause debt recovery actions for consumers in a negative income who have an inability to pay their arrears. When first engaging in debt recovery... suppliers could consider the full range of debt forbearance options, including pausing or deferring debt recovery actions until there is a material change in a consumer’s circumstance.”

This means that if you’re in genuine hardship, your supplier should consider pausing collection efforts until your situation improves.

What If You Already Have a CCJ?

Act fast to limit the damage:

Pay within 30 days to remove it from your credit file.
Apply to “set aside” the CCJ if the debt is unfair or you weren’t properly notified.
Stick to a payment plan - suppliers may cancel enforcement if you keep up with payments.

For more information on this topic, take a look at our article What is a County Court Judgment (CCJ) and can it be stopped?