What happens when you can't pay energy bills as supplier 'must help'

Anyone fearing they could get cut off this winter needs to know the rules

Following the recent October price cap increase and the winter fuel payment cut to pensioners, many UK households are due to be left in a vulnerable position this autumn and winter period - with some customers even being unable to afford their energy bills. Energy bill experts at Bionic have explained what could happen if energy bills are not paid and what energy providers can do to help you.

Les Roberts, Business Energy Comparison Expert at Bionic, said: "The most important step to take if you feel you cannot afford your energy bill is to contact your supplier as they are obliged to outline your options, such as organising a payment plan. Under official Ofgem rules, your provider must organise an affordable payment plan and as part of this, consumers have the right to ask for a bills review to see if the amount is correct, a break from payments until you can afford to pay, a reduction to an affordable rate, access to advice on how to reduce energy usage or more time between payments.

"Your provider must also give you access to any available hardship funds, charitable grants or help you apply for any available government grants if they have not been automatically applied. One such example is the Cold Weather Payment which is available once the temperature drops below a certain level and you are state pension age or claiming Universal Credit/Jobseekers Allowance.

"Your energy provider does have the right to take action if you stop paying your direct debit and begin to rack up debt. They could potentially move you on to a prepayment meter, which means you would most likely be paying a higher rate. A prepayment meter requires you to pay for energy as you use it.

"However, you do have some rights as a consumer before this happens. Your supplier has to give you at least 28 days to repay your debt before they take action. They cannot enter your home and install a prepayment meter without at least 7 days prior warning. Remember, your supplier should offer you a payment plan or help you to arrange repayment through your state benefits before they install a prepayment meter. You can also refuse a prepayment meter if you are unable to physically reach your meter or top up the balance at a shop. For example, if you are disabled, ill or live very remotely.

"Do note that if all the above conditions are met and you still refuse to pay, your supplier does have the right to gain a warrant to enter your home and install the meter or they could change your smart meter setting to a pay-as-you-go set up."

Can Your Energy Provider Cut You Off If You Don't Pay?

If you can’t agree a payment plan with your supplier and refuse to have a prepayment meter installed, then your supplier can begin steps to disconnect your supply.

Your supplier can disconnect your supply in the following circumstances:

• If you haven’t come to a repayment agreement and refuse to have a prepayment meter installed without a valid reason (for example, an illness or disability stops you from accessing, reading, or using the meter).
• If you do arrange a repayment plan but miss an instalment, your supplier can start action that could lead to disconnection after 28 working days from the date you missed the payment.
• If you haven’t paid after 28 days from the date of your bill, your supplier can start putting the wheels in motion to disconnect your supply.

Disconnection can only be considered when all other options have been exhausted and both gas and electricity suppliers must give you seven days’ notice before they do it.

Ofgem has stated that suppliers should do everything in their power to avoid disconnecting your supply especially if you are ill or disabled and they are not allowed to disconnect the supply of a person who is above the state pension age or lives alone between the colder months of October to April.

What Should I Do If My Provider Isn’t Giving Me Sufficient Support?

Find your energy provider’s contact details either online or on your latest energy bill and file a complaint with them, either online, by phone or letter. Make sure to keep a record of any past correspondence, such as emails asking for support which went unanswered. Keep a record of correspondence dates so you can prove you have been left without an answer.

You can also contact Citizens Advice who may be able to help you with your complaint and provide you with a template complaint letter.

You can also go to the Energy Ombudsman, a service which handles disputes between providers and consumers, if your complaint has been unanswered, or you are not satisfied with the reply after 8 weeks. If you cannot come to an agreement with your provider, they are obliged to help you contact the Energy Ombudsman. This service is approved by Ofgem.

Can Not Paying My Bills Affect Me in The Future?

You also need to be aware that not paying your energy bills can have a negative impact on your credit score, which could make it harder to borrow money in the future.

Although you pay for your energy as you use it (this is the case for both domestic prepayment and credit meters) credit reference agencies can be notified for non-payment of utility bills. Your supplier could pass your account onto a debt recovery service, and you may even be hit with a County Court Judgement (CCJ). Even if you then repay the debt, a record of a CCJ will stay on your credit file for six years and can make it harder to borrow money.

Can I Switch Energy Providers If I’m In Debt?

As prices skyrocket you may decide to shop around for the best deal, using a comparison website. It is important to be aware that if you have been in debt with your current provider for more than 28 days your switch might be blocked. But your supplier can’t stop you from switching if it’s their fault you’re in debt.

If you have a prepayment meter, you can switch if you’re in debt, so long as the amount you owe is £500 or less per fuel. In this instance, The supplier you switch to will take on the debt and you will repay them instead.