When you open an account with us or move premises, you may need to provide us with a security deposit.
What is a security deposit? Why is it held?
The security deposit is held as a risk based deposit to cover the potential non-payment of your electricity account.
How is the amount assessed?
We assess the security deposit amount based on a risk assessment, which takes into account:
- an industry risk assessment
- an external credit check
- a Director check
- consideration if the account is a transfer of ownership or an ongoing business
- additional information that may lead to a reduced risk assessment.
We’re here to work with you to try and reduce the security deposit amount as much as possible. We’ll be in contact to discuss the deposit and request any information to assist with the risk assessment.
How can the security deposit be waived or reduced?
Your security deposit may be waived or reduced if you can provide:
- 24 months of consecutive, comparable bills from another energy retailer showing evidence of payments by the original due date
- A letter of reference from an energy retailer
- A final bill from an energy retailer that includes a reference
- Other evidence of acceptable payment history:
- Utilities or regular trade bills of a similar value
- Trade references
- A pre-payment – As an alternative to a security deposit, you can make a pre-payment amount on your account, and pay your bills via SmoothPay, Direct Debit and e-Bill. The account must be kept in credit by this amount until good payment is assessed.
What interest do I earn on the amount held?
For cash deposits, you will earn interest at the bank bill rate, currently approximately 2.31 per cent per annum.
How long will the security deposit be held?
- Small business (less than 100MWh usage per annum): We'll return your security deposit after 24 months of good payment history
- Large business (more than 100 MWh usage per annum): We’ll review yearly but your security deposit may be held for the life of the account.
How can I pay the security deposit?
You can pay the security deposit by cash deposit or bank guarantee.