From Disconnection Threat to Resolution: How We Successfully Managed a Complex Change of Tenancy Dispute
Last updated 07 October 2026
5-Point Summary:
- A new occupier inherited a complex energy dispute after taking over two retail premises where substantial historic energy debt existed.
- The supplier initially rejected a legitimate Change of Tenancy (CoT) application, alleging links between the outgoing and incoming businesses.
- Debt recovery agents began pursuing enforcement action and potential disconnection while the dispute remained unresolved.
- Kilowatt Energy challenged the supplier’s position, coordinated evidence, managed the complaint process, and negotiated a commercial resolution.
- The matter concluded with a negotiated settlement, successful processing of the Change of Tenancy, release of the electricity supplies, and avoidance of disconnection.
In the commercial energy sector, Change of Tenancy disputes can quickly become complicated. When historic debt, supplier challenges, debt collection proceedings and disputed liability become involved, businesses can find themselves facing significant financial and operational risks.
Recently, Kilowatt Energy successfully assisted a retail client through one of the most complex Change of Tenancy cases we have handled in recent years.
To protect client confidentiality and comply with UK GDPR requirements, all identifying details have been removed or anonymised. This case study focuses on the process, challenges and outcome rather than the individuals involved.
The result was a successful resolution that prevented disconnection, secured a commercial settlement, processed the Change of Tenancy and allowed the business to move supplies without interruption.
The Background
The case began when a retail business took occupation of two commercial premises previously occupied by another trading company.
As part of the normal onboarding process, the incoming occupier required:
- Energy accounts to be transferred into the new business name.
- A Change of Tenancy to be processed by the incumbent supplier.
- Historical liabilities to remain attached to the outgoing occupier.
- Future energy usage to be billed correctly to the new tenant.
At first glance, this appeared to be a routine Change of Tenancy exercise.
However, shortly after occupation commenced, substantial historic debt emerged on the affected electricity accounts.
The supplier and its appointed debt recovery agents were seeking recovery of outstanding balances that had accumulated prior to the new occupier taking possession of the sites.
One account alone carried arrears exceeding £33,000.
The situation quickly escalated from an administrative process into a potentially business-critical dispute.
Immediate Risk of Disconnection
The most urgent concern was the risk of disconnection of electricity.
Formal communications indicated that enforcement action was being considered and that recovery proceedings could progress if the matter remained unresolved.
As with many commercial disputes, the timing was crucial.
The client had only recently commenced trading from the premises and any interruption to supply would have had significant operational consequences.
At this stage, our priority became twofold:- Protect the continuity of supply.
- Establish the legitimacy of the Change of Tenancy.
Without a recognised Change of Tenancy, the new occupier risked becoming entangled in disputes relating to historic liabilities.
Building the Evidence
To support the tenancy change, we worked closely with the client to compile a comprehensive evidence package.
This included:
- Lease documentation.
- Occupancy evidence.
- Change of Tenancy forms.
- Meter readings.
- Business information.
- Authorisation documents.
We also prepared the necessary Letters of Authority to enable direct engagement with the supplier and associated parties.
One challenge arose immediately.
The supplier rejected the initial authority documentation because it did not meet specific internal requirements relating to signatures and execution procedures.
Rather than allowing this to delay the process, we coordinated revised documentation and resubmitted the required evidence.
This ensured the case could continue progressing despite procedural obstacles.
The Supplier Rejects the Change of Tenancy
The matter became significantly more complicated when the supplier rejected the Change of Tenancy application.
- The evidence supporting the alleged links.
- The basis on which the supplier rejected the Change of Tenancy.
- Any further information required to satisfy the supplier’s concerns.
Turning the Complaint into a Solution
Recognising that routine correspondence was not producing progress, the matter moved through the supplier’s formal complaints process.
Rather than simply repeating previous arguments, we focused on presenting a structured, evidence-led challenge.
Our approach centred on several key principles:
- Cooperation: The incoming occupier had supplied all reasonable evidence requested throughout the investigation.
- Transparency: The tenancy arrangements were fully documented and supported by written agreements.
- Fairness: The client should not face ongoing uncertainty indefinitely whilst waiting for a definitive outcome.
- Commercial Practicality: The dispute required a workable resolution that allowed all parties to move forward.
Over time, this approach gained traction.
The supplier undertook a further review of the case and eventually entered discussions regarding settlement.
Negotiating a Resolution: Following extensive correspondence and review, the supplier proposed a commercial settlement.
Rather than continuing to dispute the matter indefinitely, a practical solution was agreed that reflected the circumstances surrounding the occupancy period in question.
The supplier offered revised short-term contract rates covering the relevant period of occupation.
This produced a significantly lower liability than the potential exposure that had originally concerned the client.
Following careful review of the proposal and confirmation of settlement terms, agreement was reached.
Formal invoices were subsequently issued.
The client arranged payment and supplier transfer arrangements were put in motion.
Successful Completion: The final stage involved ensuring that the agreed resolution translated into operational success.
Evidence of payment was supplied to the supplier and confirmation was requested that the electricity supplies would be released for transfer.
The supplier ultimately confirmed:
- Receipt of payment evidence.
- Acceptance of the agreed arrangements.
- Release of the supplies.
- Continuation of agreed rates until transfer completion.
The Change of Tenancy was successfully processed and the supplies were transferred without interruption.
Most importantly, the business remained operational throughout the process.
The Key Takeaways
This case demonstrates several important lessons for commercial energy consumers:
- Notify suppliers immediately whenever occupancy changes.
- Maintain clear documentary evidence of tenancy arrangements.
- Challenge incorrect or unsupported supplier decisions.
- Act quickly when disconnection notices are received.
- Seek specialist assistance before disputes escalate.
A well-managed Change of Tenancy can be straightforward.
However, when historical debt, disputed liability or supplier objections become involved, expert representation can make a significant difference to the outcome.
Kilowatt Energy Limited. Registered with the Retail Energy Code. ADR Registration: C35KILO01. Company No: 15687169. Written by the Kilowatt Energy advisory team, independent commercial energy consultants serving UK businesses since 2023.