Paying your monthly utility bills on time is an essential part of responsible home ownership and renting. However life happens and you may find yourself unable to pay your electric bill from time to time. If you miss paying your electric bill, it can result in late fees, damage to your credit, and even loss of electrical service.
Consequences of Not Paying Electric Bill
Here are some of the common consequences you may face if you don’t pay your electric bill
Late Fees
Most electric companies charge late fees if you don’t pay your bill by the due date. The late fee amount varies but is typically 1-5% of the total bill amount. Expect to see these late fees added to your next electric bill.
Damage to Credit Score
While an unpaid electric bill alone may not damage your credit score, if the account is sent to collections it can hurt your credit rating. Missed payments can stay on your credit history for up to 7 years.
Loss of Service
If you fail to pay your electric bill after repeated late notices the utility company has the right to disconnect your service. This leaves your home without electricity which can be especially dangerous in extreme weather when heating and cooling is needed.
Reconnection Fees
If your power is disconnected for non-payment, you will likely have to pay a reconnection fee. This covers the utility company’s costs to send a technician to your home to restore electrical service. Reconnection fees often start around $30.
Collections & Legal Action
After several months of non-payment, your electric account will be sent to collections. This allows the utility company to recover the owed money by reporting it to credit agencies, garnishing wages, or taking legal action.
Security Deposits
Some utility companies will require a security deposit if your account has late/missed payments before restoring your electrical service. This deposit helps ensure future bills are paid.
How Long Before Electricity is Shut Off?
Most electric companies provide a grace period where no late fees or disconnection will occur. This grace period is usually 20-30 days after the bill due date. If your bill remains unpaid after the grace period, the utility company will send a disconnection notice saying when your power will be shut off.
Actual disconnection could happen within days to a few weeks after the notice is sent. The shut off timing depends on state regulations and the electric company’s policies. Many states prohibit winter shut offs to avoid leaving homes without heat.
Making Partial Payments
If you can only afford to pay a portion of your electric bill, it’s better than paying nothing. A partial payment shows the utility company you fully intend to pay off the balance owed. However, additional late fees will still be applied to the unpaid portion and shut off is still possible if you can’t pay the full balance within their grace period.
Ideally you should pay as much as you can upfront, then contact the electric company to discuss payment plan options for the remainder. They want to continue providing service, so may be willing to work with customers facing financial hardships.
Assistance Options for Unpaid Electric Bills
Here are some options to help avoid having your electricity shut off if you’re struggling to pay your electric bill:
-
Payment plans – Most electric companies can put you on a payment plan to pay down a past due balance over several months. This allows you to pay what you can afford while keeping service active.
-
LIHEAP – The Low Income Home Energy Assistance Program provides grants to help lower income households pay energy bills. You must meet income requirements in your state to qualify.
-
Budget billing – This allows you to pay a fixed amount each month based on your average usage rather than actual bill amounts. This helps when bills fluctuate seasonally.
-
Energy audits – Some electric companies will provide home energy audits for lower income customers. This identifies ways to improve efficiency and reduce monthly bills.
-
Medical certificates – Those with medical conditions requiring electricity can request certificates that prohibit shut offs for a set time period. Verification from a doctor is required.
Impact on New Service & Moving
If you have an outstanding balance or service was disconnected on an account, most electric companies will require you to pay it before establishing new service. This applies when moving to a new home or area served by the same provider.
Unpaid electric bills can also impact opening accounts with other utility companies. Providers share information about customer payment histories and may deny service applications if you have a history of non-payment with other utilities.
Key Takeaways
-
Paying electric bills late can result in late fees, collections, and even service disconnection.
-
Utility companies usually allow 20-30 days past the due date before shutting off power.
-
Making partial payments shows good faith but does not guarantee uninterrupted electrical service.
-
Assistance programs like LIHEAP are available for those struggling to pay their electric bill.
-
Outstanding balances must be paid before electric companies will establish service at a new address.
Being proactive with your electric company by discussing payment options can help avoid the major consequences of unpaid utility bills. Reaching out quickly after a missed payment shows you intend to make it right and want to continue service. If you take steps early on, you can often avoid the headaches of collections, credit damage, and power shut offs.
What Happens If I Don’t Pay My Electric Bill? (Worst Case Scenario)
FAQ
Does not paying electric bill affect your credit?
What happens if you never pay a bill?
How late can you be on your electric bill before they shut it off in California?
|
Days from Bill Issue Date
|
Action Taken
|
|
Day 27
|
$10 late fee assessed on unpaid amounts.
|
|
Day 36
|
10-day shut-off notice sent and $15 late fee assessed.
|
|
Day 44
|
48-hour shut off notice sent.
|
|
Day 46
|
Utilities shut-off.
|
What happens if you don’t pay your consumer’s energy bill?
What happens if you don’t pay your electric bill?
Since the pandemic, many U.S. citizens have fallen behind on their utility bills. At the end of 2020, the U.S. utility debt was an estimated $32 billion. If you fail to pay your electric bill for a few months, your utility company might shut off your service. Usually, they will not do this after one late payment.
What if I don’t pay my utility bill?
Try these ways to get help. Roughly 1 out of 6 American households struggles to pay for utilities, such as electricity, oil, and gas. If you don’t pay your bill, it could lead to extra fees, credit score damage, and service disruptions. You could get utility bill support from government programs along with many nonprofits.
What happens if I pay my electric bill late?
If you are paying electric bills late regularly or even once, you should contact your provider. If needed, they may be willing to adjust your due date to help you make on-time payments. After all, they want to get paid for the services provided. So what happens if you pay your electric bill late? At first, nothing may happen.
What if I can’t pay my energy bills?
As a customer of an energy supplier, you have the right to support if you’re struggling to pay your bills. If you cannot pay the amounts asked of you, rather than simply cancelling your payments you should contact them to discuss your options. An affordable payment plan should be offered to you.
What happens if I miss a payment on my energy bill?
If late payments continue to happen, then an energy company can require a security deposit on your account to continue receiving services. Additionally, your internal credit rating with the energy company can be damaged. If your late payments eventually turn into missed payments, then the energy provider may issue a disconnect order.
What happens if your energy bill goes up?
If your energy bill has recently gone up, it can be frustrating. Of course, heftier bills are to be expected if your electricity use has increased. However, the problem might be with your utility company if there hasn’t been a change in your energy consumption.
