Can you switch energy supplier if you're in debt?

Many people assume they're trapped with their current energy supplier because they owe money. But the rules are more flexible than you think.

The £500 rule

Since 2018, you can switch energy supplier if your energy debt is **£500 or less per fuel** (gas or electricity). The debt transfers to your new supplier along with you.

If your debt is over £500 per fuel, you'll need to negotiate with your current supplier to reduce it before switching.

Why switch?

Even if you're in debt, moving to your supplier's cheapest tariff or switching to a cheaper supplier overall can:

How to switch

1. Check the cheapest tariffs on comparison sites (Uswitch, Compare the Market)

2. Apply to switch — your new supplier handles the process

3. Your debt transfers to the new supplier's records

4. Set up a manageable payment plan with the new supplier

What about smart meters?

If you have a smart meter, it should continue working after switching (SMETS2 meters). Older SMETS1 meters may revert to "dumb" mode temporarily.

If you can't switch (debt over £500)

1. Contact your current supplier's hardship team

2. Ask about their cheapest tariff — they must offer it to you

3. Apply for their hardship fund

4. Set up a payment plan to bring debt below £500

5. Once under £500, switch

Energy social tariffs

Many suppliers offer social tariffs with discounted rates for low-income customers. Ask your supplier directly — these aren't always advertised.