Utility Bills Arrears

If you’re behind on gas, electricity or water bills, it’s important to understand your rights and what steps you can take. This guide explains how to deal with utility debt and find a way forward.

Dealing with gas and electricity debts

Gas and electricity are priority debts. This means you must focus on paying them before non-priority debts like credit cards or payday loans. Falling behind can feel overwhelming, but you have clear rights and protections.

Check your bill first

Before you do anything else, check that the bill is correct. Make sure it’s in your name and sent to the right address. You’re usually responsible for the bill from the day you took over the supply.

You should also check if the bill is ‘estimated’. If it is, you can give your supplier an up-to-date meter reading so you only pay for exactly what you have used. If the debt belongs to someone who lived in your home before you, you’re not responsible for it.

What happens if you miss a payment?

 If you miss a payment, the energy company will send you a reminder. It’s really important to contact them as soon as possible. If you don’t reply or can’t agree on a plan, they can take further action. This might include:

• Visiting your home to collect the money.
• Passing your account to a debt collection agency.
• Getting a court warrant to come inside your home and fit a prepayment meter.

If they have to visit your home, they’ll add the cost of that visit to your debt.

Will they turn off my energy?

 Energy companies can disconnect your supply, but this is strictly a last resort. They aren’t allowed to cut you off without warning. They must wait at least 28 days after sending your bill and then give you another seven days’ notice in writing.

Most suppliers won’t disconnect you if:

• You agree to a payment plan.
• You agree to have a prepayment meter installed.
• You’re considered vulnerable.
• It’s classed as being a colder season (the period between October and March) and all adults in your home are over retirement age.

How to set up an energy bill repayment plan

 Energy suppliers are regulated by Ofgem. This means they must follow strict rules and offer a payment method that suits your financial situation.

1. Work out your budget: Write down all the money you have coming in and going out.
2. Make a realistic offer: Work out what you can afford to pay towards the debt, on top of paying for the energy you’re using now. Never offer more than you can actually afford.
3. Start paying: Even if the supplier says no to your offer at first, start paying that amount anyway to show you’re trying.

You can ask to pay your bills every week, every two weeks or every month. If the person you speak to on the phone is unhelpful, you can also ask them for a copy of their ‘code of practice’, which explains your rights in detail.

Extra help is available

 If you receive certain benefits, you might be able to set up direct payments. This allows the government to take a small amount from your benefits and send it directly to your supplier. Finally, some energy companies have charitable trust funds that offer grants to help people clear their utility debts.

Dealing with water bills

Falling behind on your water bill can feel worrying, but you have options. It’s important to act quickly so you can stay in control of the situation.

What happens if you miss a payment?

You should speak to your water company as soon as you realise you can’t pay. By working out what you can afford and agreeing a plan with them, you can avoid the stress of going to court. It also stops them from adding extra charges to your account.

Will they turn off my water?

The law says water companies can’t turn off the water to your home just because you owe them money. The only time they can cut off a water supply for unpaid bills is if it’s a business property.

What action can they take?

Even though they can’t turn off your water, you still need to pay. If you miss a payment, the company will send a reminder or a final notice giving you seven days to pay.

If you don’t reply, they’ll send another letter warning you about court action. After those seven days are up, they can take you to court to get the money back. This’ll add more costs to your bill, so it’s always best to speak to them first.

How to make a plan

If you agree that you owe the money, write down a personal budget. This helps you see exactly what money you have coming in and going out. You can then offer to pay a set amount every week or month towards your debt, on top of paying for the water you’re using now.

You should call the company first and then send a letter by Recorded Delivery so you have proof they received your offer. If you have a water meter, the company usually estimates your bill based on what you used last year. If your life has changed and you’re using less water, you can ask them to lower this estimate.

Extra help to pay my water bills

Many water companies have special funds and grants. Some examples include the Northumbrian Water Hardship Fund and the Severn Trent Water Hardship Fund.

If you set up a payment plan and stick to it, they might write off some of the debt you owe. These funds are limited, so they try to help people who just need a bit of support to get back on their feet.

What if I’m struggling to make repayments on my own?

Many utility companies also have trust funds set up to help people in difficult situations. Ask your supplier if they have any schemes you can apply for.

If you’re finding it hard to manage your payments or talk to your suppliers, we’re here to help. You can get in touch online or talk to an advisor for free today on 0800 316 1833.

Struggling with debts? Contact us today!

If you’re in arrears with your utility bills and struggling with debts, it could be worth contacting us to find out about a wide range of other practical debt solutions that help people deal with their debts and get on with living their life.

Get free, confidential advice online or call 0800 316 1833. We’re here to help you find a solution that works for you.