Will you be asked to pay a deposit when you sign an energy contract?
In some cases your supplier may ask for a security deposit before agreeing to a new energy supply contract.
When might you get asked to pay a deposit or connection charge?
Your supplier may ask for a security deposit if you’ve had problems paying bills in the past or you’re not on the electoral roll (the list of people who can vote in this country).
If your supplier asks for a security deposit, they cannot ask for an unreasonable sum of money. You will get the money back when you have shown your supplier you have paid your bills on time and in full for a year. Ask your supplier for more information.
Your supplier can’t ask for a security deposit if you’re prepared to take your supply through a prepayment meter (where it is suitable for you to do so).
Some suppliers may, instead of a security deposit, accept the name of someone who will guarantee to pay your energy bills if you fail to. You can also look around for a supplier which doesn’t ask you to pay a security deposit. Some suppliers will waive a security deposit if you agree to pay by Direct Debit.
You won’t have to pay a connection charge if you already have a meter in your home.