Can an Energy Supplier Add Fees to a Disputed Debt in the UK?

Question from jb1, Can an Energy Supplier Add Fees to a Disputed Debt in the UK?

Answer from AI:

When disputing a debt with an energy supplier in the UK, it is important to understand your rights and the regulations that govern such situations. Here’s a general explanation of the relevant laws and guidelines.

Understanding Your Rights

In the UK, energy suppliers are regulated by Ofgem (the Office of Gas and Electricity Markets). Ofgem sets out rules and guidelines to ensure that energy suppliers treat customers fairly, especially when it comes to billing and debt collection.

Adding Fees to Disputed Debts

Generally, energy suppliers are not allowed to add fees to a debt that is genuinely in dispute. The key legislation and guidelines that address this issue include:

• Consumer Rights Act 2015: This act ensures that consumers are treated fairly and that any terms in a contract are transparent and fair. If a debt is disputed, adding fees could be seen as an unfair practice.
• Ofgem’s Standards of Conduct: These standards require energy suppliers to treat customers fairly, which includes handling disputes in a reasonable manner. Suppliers should not add fees to a disputed debt until the dispute is resolved.
• Energy UK Code of Practice for Accurate Bills: This code of practice outlines how energy suppliers should handle billing disputes. It emphasizes that suppliers should not take enforcement action or add fees while a dispute is being investigated.

Steps to Take When Disputing a Debt

If you are disputing a debt with your energy supplier, follow these steps:

1. Contact Your Supplier: Inform them in writing that you are disputing the debt. Clearly state the reasons for your dispute and provide any supporting evidence.
2. Request a Hold on Fees: Ask your supplier to put a hold on any additional fees or charges until the dispute is resolved.
3. Keep Records: Maintain a record of all communications with your supplier, including emails, letters, and phone calls.
4. Seek Help: If the dispute is not resolved to your satisfaction, you can contact the Energy Ombudsman for assistance. The Ombudsman can investigate your complaint and make a binding decision.

When to Seek Legal Advice

If you find that your energy supplier is continuing to add fees to a disputed debt, it may be necessary to seek legal advice. A legal professional can provide personalized guidance based on the specifics of your situation.

For more information, you can refer to the following resources:

• Consumer Rights Act 2015
• Ofgem’s Standards of Conduct
• Energy UK Code of Practice for Accurate Bills

Remember, while this information provides a general overview, it is always best to consult with a legal professional for advice tailored to your specific circumstances.