Question

To ask the Secretary of State for Energy and Climate Change, pursuant to the Answer of 10 December 2014 to Question 214542, which suppliers his Department has identified as requesting a refundable security deposit.

All supply companies may ask for a deposit of money as security for the future payment of energy charges if a customer’s credit status is unsatisfactory, they have repeatedly failed to pay their energy bills or have broken an agreed payment arrangement, or a new customer is unable to provide proof of identity and/or details of previous place of residence. Deposits must not exceed a reasonable rate.

Suppliers will not ask for a security deposit when a customer agrees to have a prepayment meter installed to repay a debt, or their personal circumstances means it would be unreasonable to require one.

Supply companies will refund a security deposit in full when a customer has demonstrated their ability to pay their energy bills by paying each bill in full during an agreed period - often 12 months.

The Department does not hold information on the approach of individual suppliers to security deposits.