Rent and Credit > Moving Home? Ofgem Plans Big Energy Change

Moving Home? Ofgem Plans Big Energy Change

Wollit Team2 minute read · Updated 17th December 2025

Ofgem has announced new proposals that could change how people use energy in the short period between moving out of a home and setting up a new account in their next one. The idea is to prevent unpaid bills from building up when a property becomes empty — but it also means there are some important things movers will need to be aware of.

Here’s a simple, clear breakdown of what’s changing and why it matters.

What Ofgem Is Proposing

Under the new plans, when someone moves out of a home and the property becomes empty, the energy supplier would be allowed to switch the meter to prepayment mode.

This means the next person who moves in would only get a small amount of energy credit — around £30 — before needing to set up an energy account.

It would also require the new tenant or homeowner to:

contact the supplier quickly
create a new account
top up their meter straight away

Until they do, their energy use could stop once the £30 is used.

Why Ofgem Wants to Make This Change

According to the proposal, suppliers currently struggle to get paid for energy used between tenants — for example, when someone moves out and forgets to tell the supplier. Those unpaid bills can add up, and suppliers often pass those costs onto customers through higher tariffs.

By switching empty properties to prepayment mode, Ofgem says:

energy won’t be used without an active account
unpaid bills will be far less likely
suppliers won’t need to recover those losses from everyone else

In theory, this could help keep costs more stable overall.

What This Means If You’re Moving Home

The biggest change is that new movers won’t automatically have access to continuous energy when they walk into a new property. Instead, you might find the meter on prepayment mode with only £30 of credit.

So if this rule goes ahead, anyone moving home should:

contact the energy supplier as soon as they get the keys
make sure the account is in their name
check how the meter is set up (prepayment or standard)
top up the meter quickly to avoid losing power

Ofgem is also looking at ways to make this process smoother for vulnerable customers, so people who rely on life-supporting equipment or have accessibility needs are not put at risk.

Why This Matters for Everyday Households

Even though this may sound like a small technical change, it affects anyone renting or buying a home because moving is already stressful and expensive. This new system would add another task to your moving checklist.

It also matters because energy costs are still a major part of monthly budgets. Losing power unexpectedly — even for a short time — can disrupt daily life, especially for families, people working from home, or those trying to manage finances carefully.

When Could This Come Into Effect?

The proposal is still under consultation, which means:

nothing is final yet
the public, energy companies and advice organisations can give feedback
a final decision will be made later

But the proposal is significant enough — and practical enough — that it has a real chance of going ahead.

In Summary

Ofgem’s new proposal would allow energy suppliers to switch empty homes to prepayment mode when someone moves out. The next resident would get £30 credit to keep things running temporarily, but would need to set up their energy account straight away.

It’s a change designed to reduce unpaid bills and keep costs down across the system — but it also means movers will need to be more prepared when arriving at a new home.

As the proposal moves forward, keeping an eye on updates will help you avoid surprises if you’re planning to move in the coming months.