Security Deposit caution - So Energy, maybe others

diyeco

I recently switched to So Energy for electricty - well tried to.  I signed up as a Direct Debit customer and fortunate to have good credit scores, so given their T&Cs:

“Security Deposit” means an advance payment to cover any future charges. The amount depends on your individual circumstances.
3.5 Before we begin to process your switch and take you on supply, we will conduct a credit check on you if you pay on receipt of a bill. ...
3.5.1 We can ask you to pay a Security Deposit if you do not pass our credit check. ....

I was surprised when they demanded a (fixed) £250 Security Deposit or the switch would be cancelled.  The (only) way of paying the Security Deposit broke every scam rule, but might get into that later.  Their FAQ on Security Deposits said:

• The deposit will not form part of your account balance and it cannot be refunded whilst you are still on supply with us.

I repeatedly pressed So Energy that if the Security Deposit was not part of my credit/account balance, was it protected by Ofgem if they ceased trading?  Ofgem state, hence my suspicion:

• Ofgem’s safety net will protect your supply and any credit balance.

So Energy repeatedly claimed the Security Deposit would be protected, but were unable to provide any Ofgem or other reference to this.  So I checked with Ofgem who said:

In the event of an electricity [cease trading] and a Supplier of Last Resort is appointed ... any credit balance that customers may have had on their account would be protected as part of the process. However, this protection would not extend to security deposits that were not credited to the customer’s account balance.

If a failed supplier holds a security deposit against a customers account, unless an agreement has already been arranged between the administrator and Supplier of Last Resort, the customer would need to contact the failed supplier’s administrator to be registered as a creditor to claim the security deposit back.

So Energy, when this was put to them have gone curiously silent 

I think I saw one other electricity supplier with this clause on their T&Cs, not the others.

Any others have thoughts / experiences on when and how Security Deposits are required?

diyeco

Secondly, wondering why So Energy were so keen for a Security Deposit, I checked their latest accounts (accounts to end 2024 but reports dated 25 Sept 2025):


At a guess, So Energy are having trouble meeting Ofgem's rules, and using strange T&Cs and Security Deposits to try and raise ££££ 

elsien

I used So energy but wasn’t asked for a security deposit. 

diyeco

when did you start with them please?

luci

I was also with So Energy for a couple of years before switching to Octopus a year ago. I wasn't asked for a security deposit.

bristolleedsfan

https://justsoyouknow.so.energy/posts/2111597-security-deposit-faqs "Some Customers"

Farway

I was also with So Energy before switching. I was not asked for a security deposit.

diyeco said:

Any others have thoughts / experiences on when and how Security Deposits are required?

From the link supplied, ref Some customers

"we will complete a credit check which will appear on your credit file. Based on the results of that check, we may write to you via email and ask for a security deposit of £250 to be paid"

diyeco said:

At a guess, So Energy are having trouble meeting Ofgem's rules, and using strange T&Cs and Security Deposits to try and raise ££££ 

At a guess, your credit check was not as good as you think or they like

Scot_39

Just had a quick scan of my supplier - EOn Next - who now say can ask for 1 month advanced DD payment - and subject to credit check - also a security deposit - in current T&Cs.  

But they and EDF IIRC (when last read when thought might be able to switch to E10 with them ) say its subject to review - and EDF that it will be used to clear debit on account - exact wording ? - if no longer needed (iirc).

Octopus have references to advance payment (on balance I assume) and security deposit (?) - in their domestic T&Cs - but seems a bit vague (unlike their rules for business client security deposits - which do reduce over time as long as paying on time) on how they treat it.

I guess most might have - now if not in past - given debt situation and/or new Ofgem liquidity rules.

Having it fixed for term - and treated as a creditor - so potentially never returned if go into admin - though seems a particularly bad deal. More so given their warning for liquidity test failure next year.

elsien

Just checked and EDF now also mentioned the possibility of a security deposit as well. 

diyeco

>At a guess, your credit check was not as good as you think or they like
This might be true - but my concern was:

1. Their T&Cs say it only applies to "pay on receipt of a bill" customers.  I was not - I was on Direct Debit.
2. Their T&Cs say they will only do a credit check for "pay on receipt of a bill" customers.  I was not - I was on Direct Debit.
3. Somewhere it says if they do a credit check it will leave a "soft" record on your credit record.  I got credit check reports from the 3 reference agencies, and none have this soft record on them, so I am unsure they ever did a credit check?

As per the next post, which matches my research, the So Energy requirements are at odds with the rest of the industry.  Hence my starting this, to anyone considering switching to So Energy, I'm suggesting act with caution if they require a Security Deposit.

To those who responded So Energy did not require a deposit some time ago - thank you.  It appears this might be a critical time for So Energy as per their accounts, hence maybe they are only requiring them now?  We'd be lucky to find anyone else switching to So Energy in the last 2 weeks or so?

Edit: as per above posts re other suppliers - I (skim read) T&Cs for 11 suppliers.  All had provision for (security) deposits.  However, only So Energy and Fuse Energy appear to hold the deposit separately to your account/credit balance, and only these 2 seem to require the deposit for the duration of the contract.

Edit 2: I emailed Fuse Energy enquiring about their Security Deposit and if protected.  They quickly replied:
"We currently don't ask customers for a security deposit and we will update our T&Cs accordingly! Thanks for pointing this out!"

diyeco

The link https://justsoyouknow.so.energy/posts/2111597-security-deposit-faqs referred to above I see was "Updated December 12, 2025" - likely as a result of my complaint.

It used to say: we may write to you via email and ask for a security deposit of £250 to be paid via a secure link. 
but now says:  we may write to you via email and ask for a security deposit of £250.

Later in the page it now says: The email will contain all the instructions needed to make the payment, which may involve calling a designated phone number.

I repeatedly challenged So Energy for where was the 'secure link' since their email required me to call a number that was not listed on their website anywhere, a google search for the number says it is a scam number (presumably because it is not listed).

So Energy's reply was almost funny in their definition of a "secure link":
Our payments team has confirmed by saying the secure link is in reference to you calling the number [the unlisted one], to which my colleagues in the collections and payments team would take this security deposit payment over the phone.

Please note So Energy acknowledge the phone number is not on their website:
I do understand that the number is not on our website, as this number is specifically provided to customers who are required to make a payment for their security deposit. This is why the number is not advertised on the website.

Getting an unexpected email, asking you to phone an unlisted number, with a link in it NOT to So Energy (albeit it seems to redirect there), to make a payment contrary to their T&Cs seems to break every phishing rule out there?