Arrears of gas or electricity should be treated as a priority debt because the utility companies have the authority to:
- cut off your power supply if you do not pay your bill
Can I be disconnected?
Disconnection should be the last resort.
If you have not paid your bill within 28 working days of the date on the bill (or other request to pay) a notice of the supplier's intention to disconnect will be sent to you. The notice should give you at least seven working days to pay. If you do not pay you could be disconnected.
A supplier cannot disconnect you if there is a genuine dispute about the arrears.
The winter moratorium (1 November to 31 March) means that a house containing vulnerable people, for example elderly people cannot be disconnected during this period.
You can stop disconnection if:
- you agree to and stick to a payment plan
- you agree to have a prepayment meter fitted
- you inform your supplier that you are contacting the Department of Work and Pensions or Social Services for help (see Income Support below). In this case, the disconnection can be delayed for 14 to 21 days to give you time to get help. You must let your supplier know about any developments.
Some suppliers routinely fit a prepayment meter rather than disconnecting the supply.
The amount of time given until action is taken can vary between suppliers.
Are there any easy ways to pay?
Utility companies must accept whatever you can really afford to pay towards your arrears - even if this means it will take years to pay off the debt.
To work out how much you can afford you need to see how much money you have coming in and how much you need to live on each week or month. Use only the money that is left over to decide how much you can pay.
Remember, your offer needs to be realistic for you - be sure you can keep up with the repayments offered without getting into debt with something else.
Utility companies should also offer you:
This can be paid weekly, fortnightly or monthly. It will include enough money to pay for the fuel you are using now, and a small amount towards your arrears
Or
Modern meters take cards or tokens, not cash. Provided it is safe to install a meter, they must offer you one rather than cut you off. They must set the meter to collect your arrears at a rate you can afford although they can be reluctant to do this so you may need to get advice.
Can I reduce the amount I pay?
It can sometimes be cheaper to move to a different supplier for gas and electricity. Help may also be available to make your house more energy efficient. You can get free advice about this from the Energy Saving Trust (external website) or by phoning 0800 512 012.
If you are a British Gas or Scottish Gas customer you may be able to get help from the British Gas Energy Trust (external website). If you are not a customer of theirs, it is worth checking if your supplier has a similar scheme.
I get Income Support
You can sometimes have the money for gas and electricity, plus a set amount for the arrears, stopped from your benefit and paid direct to the company. Ask at the Jobcentre Plus office about this, or contact a Money Adviser for more details.
What if I can't reach an agreement?
If you cannot get the arrangement you want, ask to speak to a manager. If you are still unable to reach an agreement get advice from a Money Adviser.
What if I owe money to a company that no longer supplies my fuel?
In this situation the company will not be able to cut off your supply so the debt is not a priority. You should deal with this debt in the same way as your non-priority credit debts.
What if I owe money to a utility company for goods?
You can only be cut off for actual gas or electricity bills. You cannot be cut off because you owe a company money for goods you have bought on credit. If you owe money for goods this is likely to be a non-priority debt.
Information on other websites
National Debtline
Information about dealing with gas and electricity arrears can be found in the self-help pack
Ofgem
The regulator for Britain's gas and electricity industries
Consumer Focus (previously Energywatch)
Energy help and advice and your rights as a consumer
Need more help? Live in Manchester? Send us an email
Information Provider:
Manchester Advice
Date Written:
8 April 2005
Date Reviewed:
5 November 2008
This information is for guidance only and is not an authoritative statement on the law. Please read our Terms and Conditions.
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