Security deposits will be requested if:
- Your credit assessment identifies you may have difficulty paying for your usage
- You ask Valda Energy to re-connect the energy supply or to replace a prepayment meter with a credit meter
Security deposits may be requested:
- Where a supply contract renewal is received but you have not paid your bills on time.
What is a security deposit?
A security deposit is a sum of money that Valda Energy hold on the account, to protect against loss if you break the terms of your supply agreement. The amount that you may be required to pay will be based on the average energy usage over a set period of three months, based on read history or information about the size of the property and its use, and based on the relevant tariff rate. Security deposits will be charged per supply point e.g. MPAN/ MPRN as opposed to supply address.
How will the security deposit be used?
We will hold the security deposit for a minimum period of 12 months. It is important that during this period you pay all the energy bills on time, as late payments will affect when the deposit is refunded. The deposit will be held separately from the main energy account, and will only be used to settle the energy bills in the following circumstances:
- When the contract with us ends. This may be due to you changing energy supplier. If this happens the deposit will be used towards paying off the final balance on any Valda Energy accounts, and any remaining funds will be returned to you as soon as possible. If the deposit does not pay off the final balance in full then you will be required to pay any outstanding monies that are due.
- If you get into debt with us. If this happens, we may use the deposit to pay off the monies that you owe. If you wish to continue to take supply from Valda Energy, you may be required to provide a replacement security deposit. If you fail to pay the energy bills, we have the right to disconnect the supply.
How can I have the Security Deposit Refunded?
- After 12 months, you may ask us to review the deposit. We will refund the deposit to you in full, if you have paid all the bills on time.
- Or we will refund the security deposit when the energy supply leaves or if you stop to have any interest in the supply premises. Any balance owed to us will be deducted from the security deposit prior to any refund being made.
