If you're signing up to a new power company

What you should know before signing up to a new power company

Make time to understand your plan

Before you sign up, your power company must tell you about all their relevant products, pricing plans, conditions, and fees. They must make sure the terms and conditions are easy to understand.

If you choose a prepay plan

It's important to know the different types of power plans you can choose from and what they will mean for you.

There are two main types of power plan: prepay and postpay

  • In prepay plans, you pay for the power before using it.
  • In postpay plans, you pay for the power after you’ve used it. This is usually at the end of the month.

If you choose a prepaid plan, your power company must make sure you understand:

  • differences in fees and rates between prepay and postpay plans
  • that you’ll be cut off if the credit runs out
  • that you will get a warning when you have less than two days before your power credit runs out
  • how to buy extra or emergency credit if you need it.

Your power company must not recommend a prepaid plan if you or someone in your home relies on power for medical reasons. This is because your power supply can be cut off on a prepaid plan if you run out of credit.

If you rely on electricity for medical reasons

Get more information if you're declined

Sometimes a power company might decide not to provide you with power. For example, if you don’t meet their credit history checks, or they do not operate in your area.

If a power company turns you down, they must give you:

  • clear reasons why they declined your application
  • information about at least one website where you can compare power companies and power plans
  • contact details of support agencies that can help.