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It can get ugly
What Would Happen if You Don’t Pay Your Energy Bill
You may think that if you don’t pay your electricity bill, you just get disconnected and that’s it. You may think that you just need to call the energy company, make a payment, or ask for a payment plan and that your energy will be restored.
In a way, yes. However, there are other problems that can lead to a real headache.
Consequences If You Don’t Pay Your Electricity Bill
In the case that you have an electricity contract with an energy company, you are breaking the rules of the contract. All this will occur:
- Higher energy rates
- Extra fees for disconnection and reconnection of the service
- Interest fees
- Late payment fees, past due fees
Yes, the energy company has the opportunity to change the rate of your energy plan. This is disclosed in the welcome packet, which we never read. All energy companies have to pay the utilities for sending disconnection and connection orders, that cost is passed to you. Of course, the energy company will not lose a dime, they will charge any kind of fees like interest fees and late payment fees.
Please, don’t think that if your energy service got interrupted you just need to move to a new energy company and that is it. Unlike the electric account stays on “standby” with the current energy service.
Electricity Payment Plan
I understand that sometimes our income and our expenses get out of hand. The money owed needs to be paid. There is a payment plan with electricity services. In these cases, the customer agrees to make payments of the electricity owed on top of the current energy used. With this energy payment plan, it triggers a SWITCH HOLD. In this case, the switch hold is in place so the energy customer won’t be able to switch to another energy company until the energy payment plan and current energy used are paid in full.
What to do if you can’t afford to pay?
- Think before you act, do something. Doing nothing can be way worse.
- Before your past due date, call the energy company and explain the situation.
- Ask for an extension or payments, ask for a payment plan, and ask for deferred payment plans. In a few words, ask for help. All energy companies are willing to help, they want their customers to stay active.
- Ask for help, you can ask for government assistance. Surely, it may take some time but you can get it.
LIHEAP. Low Income Home Energy Assistance Program.
Given that, do your best to lower those electricity bills. Do whatever it takes to lower your energy usage. Talk to your family and make a plan. Imagine what would happen if you stay without electricity for a few days?
To conclude.
Having an electricity payment plan and applying the Switch Hold, does not mean that your electricity will not get disconnected. If the energy payment plan defaults, your electricity service will be interrupted. You will not be able to switch to another electricity company. And most importantly, since the electricity payment plan was broken, the current energy company will ask you to pay the amount owed in full.