By concession, suppliers of gas and electricity obtain a refund for debts owed by domestic customers, after the suppliers have accepted the transfer of a domestic customer and their debt from another supply company from 2 August 2004.
The concession applies if a contract for the supply of gas or electricity is substituted by a new contract (‘novation’) as a result of a domestic consumer transferring from one supplier to another, and the debt is transferred to the new supplier. The new supplier may claim a bad debt refund on any part of the debt that remains outstanding six months after the date of transfer.
Conditions for bad debt refund
The following conditions must be met for a bad debt refund: