Home Energy Credit Checks in the UK

Do I need a credit check for home energy?

Most UK energy suppliers will carry out a credit check when you apply for a domestic gas or electricity account. This is especially common when you want to pay by monthly Direct Debit or receive a bill in arrears (sometimes called a credit meter account).

The credit check helps the supplier work out the risk of you falling behind with payments. It does not affect the price of the unit rates you pay (your tariff), but it can affect:

• whether you are accepted for a standard credit meter,
• whether you are asked for an upfront security deposit, and
• whether you are offered a prepayment meter instead.

What is a credit check for energy?

When you apply for home energy, the supplier may ask your permission to run a credit reference check. They will usually check your information with one or more of the main UK credit reference agencies (CRAs), such as Experian, Equifax or TransUnion.

They will look at details such as:

• your payment history on other credit accounts (loans, cards, mobile phones, etc.),
• whether you are on the electoral roll at your address,
• any court judgments (CCJs) or insolvencies, and
• previous arrears or unpaid energy bills at your property or in your name.

Each supplier uses their own internal rules to decide whether they will offer you a standard credit account, ask for a deposit, or suggest a prepayment option.

Does an energy credit check affect my credit score?

Energy suppliers typically run either a soft or a hard search on your credit file:

• Soft search – visible only to you, does not affect your credit score. Many energy credit checks fall into this category.
• Hard search – visible to other lenders and may have a small temporary impact on your score, especially if you have several hard searches in a short period.

Suppliers should tell you which type of search they will use before you apply. If you are concerned, you can always ask whether the check will be soft or hard and how it will appear on your credit report.

What if I have bad credit or a low credit score?

Having a low credit score does not mean you can be refused gas and electricity altogether. Energy is considered an essential service and suppliers have responsibilities under Ofgem rules.

If your credit history is poor, a supplier may:

• offer you a prepayment meter instead of a credit meter, so you pay for energy in advance,
• ask for a security deposit before setting up your account, or
• place you on a different payment method or tariff.

Suppliers must take your circumstances into account and should not disconnect a vulnerable customer (for example, the elderly, disabled, or families with very young children) in most situations.

Can I get home energy with no credit check?

Some energy suppliers may offer tariffs or meter types that involve little or no credit checking. In many cases this will involve a prepayment meter, where you top up as you go using a key, card or smart prepay system.

Prepayment meters mean you do not build up a large bill, which reduces the need for a full credit assessment. However, it is important to remember that:

• unit rates on prepayment tariffs can be higher than those for Direct Debit, and
• you will need to make sure you can top up regularly to avoid running out of credit.

If you want to avoid a hard search but still need a standard credit meter, ask potential suppliers how they assess new customers and whether they offer any no-deposit or low-credit-score options.

Why do suppliers perform credit checks?

Energy suppliers buy gas and electricity on the wholesale market before they sell it to you. When they let you use energy and pay later, they are effectively giving you short-term credit. A credit check helps them to:

• confirm your identity and address details,
• assess the likelihood of late or missed payments, and
• decide what payment options to offer you.

This process helps keep costs under control for all customers while still allowing people with weaker credit histories to access energy using appropriate safeguards.

What information will I need for the credit check?

To set up a new home energy account, you will usually be asked for:

• your full name and date of birth,
• the address for the supply (and sometimes previous addresses),
• a contact phone number and email address,
• your preferred payment method (such as Direct Debit), and
• where possible, recent meter readings or details about your current supplier.

Providing accurate, up-to-date information helps the credit reference agencies match you to the correct file and reduces the risk of delays or incorrect results.

What happens if I fail an energy credit check?

If a supplier decides not to offer you a standard credit meter account after checking your credit history, they should explain your options. These may include:

• having a prepayment meter installed,
• providing a refundable security deposit, usually held for a set period (for example, 12 months) if you pay on time, or
• choosing a different tariff or billing option more suited to your situation.

If you believe the decision is based on incorrect information, you have the right to:

• request a copy of your credit report from the relevant agency,
• raise a dispute to correct any errors, and
• ask the supplier to review their decision once your file is updated.

Can a previous occupier's debt affect my credit check?

Energy debts from a previous occupier at your home should not affect your personal credit history. Credit files are linked to individuals, not to properties.

However, if there are outstanding balances linked to the address, the supplier may:

• ask for evidence of when you moved in (such as a tenancy agreement or completion statement), and
• require meter readings from the date you became responsible for the property.

Always contact the supplier as soon as you move in, provide opening meter readings and confirm the date you became responsible, so that any debt is clearly separated from your new account.

How long does an energy credit check take?

In most cases, a home energy credit check is completed within minutes of submitting your details online or over the phone. You will usually receive an instant decision on:

• whether you can join the chosen tariff,
• what payment options are available, and
• whether any deposit or alternative meter type is required.

In a small number of cases, the supplier may need to manually review your application. This can happen if your information does not match the credit reference database or if you are new to the UK. Manual checks may take a little longer, but the supplier should keep you informed.

Will my ongoing payments affect my credit record?

Some energy suppliers report payment behaviour to the credit reference agencies, while others do not. Where they do report, paying your energy bill on time every month can help build a positive payment history on your credit file.

However, missing payments or building up arrears may result in:

• late payment markers on your credit file,
• default records if the balance remains unpaid, and
• in serious cases, court action such as a CCJ.

Setting up a Direct Debit and regularly checking your bills can make it easier to stay on top of your account and avoid negative markers.

How can I improve my chances of passing a credit check?

If you are worried about being turned down by a supplier, there are steps you can take to make a successful credit check more likely:

• Make sure you are registered on the electoral roll at your current address.
• Pay existing credit commitments on time wherever possible.
• Check your credit report for errors and ask the agency to correct them.
• Avoid making a high number of new credit applications in a short period.
• Provide accurate, consistent information when you apply for energy.

Over time, good payment behaviour and up-to-date information can improve your credit profile and may give you access to more energy tariffs and payment options.

What if I am a tenant or in a shared house?

If you rent your home or live in a shared property, it is important to check who is legally responsible for the energy bills. The named account holder is usually the person whose credit will be checked.

You may need to:

• agree with your landlord whether you can choose the energy supplier,
• decide whose name will appear on the bill in a house share, and
• ensure you are clear about how payments will be split between you.

Even if only one person is the named account holder, everyone in the property should contribute fairly to the cost of energy to avoid arrears building up.

How to get help if you are struggling with bills

If you are worried about passing a credit check because you have struggled with energy payments in the past, you are not alone. There is support available:

• Talk to your supplier early – they may be able to agree an affordable repayment plan.
• Ask if you are eligible for hardship funds or grants from your supplier.
• Check whether you qualify for schemes such as the Warm Home Discount or support from your local council.
• Seek independent advice from organisations like Citizens Advice if you are in serious difficulty.

Being open with your supplier and seeking help early can prevent arrears from growing and reduce the impact on any future credit checks.

Summary: key points about home energy credit checks

• Credit checks are common when you sign up for home gas or electricity, especially if you pay by Direct Debit.
• A low credit score does not mean you cannot get energy – you may be offered a prepayment meter or asked for a deposit.
• Checks may be soft or hard; soft checks do not impact your credit score.
• Maintaining regular on-time payments can help improve your credit profile over time.
• If you are struggling, speak to your supplier and seek independent advice as early as possible.

If you have questions about credit checks or want to know what options might be available for your home, you can send us a few details and we will be in touch.