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What happens if you can’t pay your bills?
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Being faced with bills you can’t pay can be stressful. While the temptation to bury your head in the sand may be strong, it’s important to act promptly and sensibly to resolve the issue. If you fail to take action, the consequences could be dire.
What happens if I don’t pay my electric bill?
In this post, we’ll look at the repercussions of leaving electricity bills unpaid for both commercial and domestic customers. You’ll also find information about schemes that can help to make your utility bills more affordable.
What happens if businesses don’t pay their energy bills?
If you haven’t paid a previous bill or you don’t pay a regular amount towards future invoices, you will be in arrears with your supplier. If you’re in debt with your current power provider, it’s counted as a priority debt. This kind of debt carries the gravest consequences so should be dealt with as a matter of urgency.
Businesses that find themselves in this position should take a proactive approach by working out how much they owe and getting in touch with their provider to figure out a payment plan. You should provide a copy of your business’s budget to support your proposed payment plan. Pay as much as you can afford to to reduce the debt and start making payments as soon as possible.
If you don’t attempt to resolve the situation, your energy supplier is within their rights to cut off your supply. However, this is usually a last resort and the utilities company should give you notice before doing this. Having your business electricity disconnected could have disastrous consequences. You would likely have to close your business while you wait for your power supply to be reconnected, which could result in a significant financial loss.
What happens if domestic customers don’t pay their energy bills?
If you’re a domestic customer who has fallen behind with their energy payments, you may feel overwhelmed and unsure of what to do. This is understandable, however it’s vitally important that you take measures to resolve the matter as soon as possible.
Start by working out what you owe your supplier and then get in touch with them to discuss drawing up a payment arrangement that suits both parties. The arrangement should cover both what you owe and an amount for your current usage. It’s natural to be worried about approaching a company you owe money to but it’s worth remembering that your energy provider is obliged to work with you to come to an agreeable solution. When determining how much your installments will be, they must take into account how much you can afford to pay and how much energy you’re estimated to use in the future.
If you can’t come to a suitable arrangement, your supplier might try to install a prepayment meter. However, you can object to having a prepayment meter installed in certain circumstances, for example if you have an illness or disability that would make it difficult to access, read or use the meter.
If you haven’t paid a bill for 28 days, you cannot come to a repayment agreement and you refuse to have a prepayment meter installed without good reason, your provider can disconnect your power supply. However, they must give you seven days’ notice before they do this.
Pensioners living alone and pensioners living with children under the age of five should not have their energy cut off between the beginning of October and the end of March. Furthermore, the ‘Big 6’ – Britain’s largest energy suppliers – will not disconnect your power if you have severe financial difficulties, a long-term health problem, a disability or young children that live with you.
Are there any grants to help pay my bills?
There are a number of initiatives that are designed to help people with their energy bills. These include:
Fuel Direct Scheme
If you receive certain benefits, you can apply to have your fuel bills paid directly out of your benefits payments if you’re in financial hardship. You can also use the Fuel Direct Scheme to pay any arrears you have with your fuel provider.
Winter Fuel payment
If you’re eligible for the State Pension or certain other social security benefits, you should automatically receive a payment of between £100 and £300 a year to help you to afford your energy bills.
Cold Weather Payment
If you’re in receipt of certain benefits or Support for Mortgage Interest, you may be eligible for the Cold Weather Payment.
Under this scheme, you’ll be paid £25 per seven-day period of very cold weather if the average temperature in your local area is forecasted to be or recorded to be zero degree Celsius or below for seven consecutive days.
Warm Home Discount Scheme
You could get £140 off your energy bill off your electricity bills in winter if you are in receipt of Pension Credit Guarantee or if you’re on a low income. This one-off discount comes off your bill rather than being paid directly to you.
Help for businesses – the Non-Domestic Renewable Heat Incentive (RHI)
While it might be difficult to find a grant to help you pay your business energy supply, it may be possible to reduce your utility bills by investing in renewable energy. The government-run Non-Domestic RHI is designed to financially reward businesses who take up renewable heat technology such as solid biomass, solar geothermal and heat pumps. Taking simple steps to improve your energy efficiency can also help to reduce your bills.
Can I get a grant to pay my bills?
Fuel Direct Scheme
If you receive one of the following benefits, you may be able to use the Fuel Direct Scheme:
- Universal Credit
- Income-based Jobseeker’s Allowance
- Income Support
- Pension Credit
- Income-related Employment and Support Allowance
Winter Fuel Payment
You may be eligible for the Winter Fuel Payment if you were born on or before 5 October 1954. You will get it automatically if you receive the State Pension or certain other benefits (not Universal Credit, Housing Benefit, Child Benefit or Council Tax Reduction). If you don’t receive it automatically but you are entitled to it, you will need to apply for it.
Cold Weather Payment
You might be entitled to Cold Weather Payments if you claim one of the following benefits:
- Pension Credit
- Universal Credit
- Income-based Jobseeker’s Allowance
- Income Support
- Income-related Employment and Support Allowance
- Support for Mortgage Interest
Warm Home Discount Scheme
You could qualify for the Warm Home Discount Scheme if:
- You receive the Guarantee Credit element of Pension Credit
- You’re on low income and meet your energy provider’s eligibility criteria
Non-Domestic RHI
There is a long list of criteria to qualify for the Non-Domestic RHI. For example, the rules dictate that you must be the owner of the installation or have permission to act for the owners if there is more than one, the plant must also be an eligible size and type and no public grants are allowed to be used to pay for the installation unless the money has been paid back already. For further information on the eligibility for the Non-Domestic RHI, see here.
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Excellent service from Kenny in the Manchester office, he worked hard to find the best price for me and explained everything along the way.
Will definitely use him again in the future and would recommend.
Jenny Burd
I spoke to Paul Kay this morning who in the space of 30 mins looks to have halved my salon electric bill, he was personable, knowledgeable and honest. The proof will be seeing if the bills actually reduce and if so I will leave another review but so far an excellent service
Julie Gale
I dealt with Utility Bidder over the past couple of days, amazing service and prompt. Paul Kay gave excellent customer service! would highly reccomend.
Alex Mcwilliam
Without a doubt utility bidder has saved my sanity. They have sorted months of going around in circles with a supplier in under a week.
I would highly recommend to everyone I know.
Nichola Morton
Had a lovely phone call from Connor this morning, he was very helpful, explained everything very clearing and all I had to do was agree to everything that was suggested and he done the rest! Very happy with the service
Terie Billson-Rodwell
I have just worked with Alex from Utility Bidder to sort our electricity contract today. He has got us an excellent price for our charity and it has all been sorted in half an hour (possibly less!). He was extremely helpful. THANK YOU
Lorraine Schulze
Had a call from Alex York who within minutes had arranged a new electricity contract with a new supplier. He was extremely courteous, professional and friendly. Highly recommend.
Susan Bateman
Robert Johnson has just completed my renewal contract with my energy supplier. He was very helpful and very efficient. It’s the first time I have used Utility Bidder and I will definitely use them again and highly recommend them. Thank you for making it so easy.
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Case studies
We’re dedicated to helping businesses like yours save more on energy. That’s why we’ve put together a selection of case studies showcasing exactly what we have achieved for company’s similar to yours.
Haywards Heath
2021
Year Joined
£1905
Total Savings
Haywards Heath RFC enjoys a strong community presence in Haywards Heath, West Sussex where the club supports a senior rugby team, six youth sides and six mini sides. The Club was established in 1959 and boasts affiliations with the London and South East Division of England Rugby and Sussex Rugby.
HTC Corporation
2020
Year Joined
£14000
Total Savings
Founded in 2009, with a range of industry accolades to our name, Hayri recognised that Utility Bidder was a well-established and growing business and our five star Trustpilot reviews along with our size and longevity ensured HTC Europe had peace of mind.
“I was impressed with Utility Bidder from the start,” said Hayri. “Nothing was too much trouble for my account manager Rebecca Lau. Professionals recognise fellow professionals and it’s true that one doesn’t buy from a company, one buys from a person and Rebecca is a credit to Utility Bidder.
Robert Jones
2019
Year Joined
£150
Total Savings
Rob says that thanks to the competitive rates secured by Utility Bidder in his studio, it would be cheaper to live there than at home! “We pay about £30 a month for gas during the winter and around £25 a month for electricity – and that’s despite having a lot of energy-guzzling equipment such as studio lights and fan heaters. Our energy bills at home are far more expensive!”
Sharda Care
2014
Year Joined
£20,000
Total Savings
Sharda Care is contacted frequently by companies within the energy industry, but the desire to work with Utility Bidder was motivated by our bill validation service (and that they hadn’t checked their VAT). Our team have an experienced background in working with businesses of this size and will instinctively scrutinise all utilities to investigate potential savings.
Cablecraft Limited
2017
Year Joined
£170,000
Total Savings
Utility Bidder saves thousands of pounds on energy expenditure for Midlands business. Cable craft have been supplying cable identification, termination and management products throughout the world for over 20 years servicing a diverse range of industries.
Thomson Hayes
2016
Year Joined
£2,000
Total Savings
Thomson Hayes retail has been established for 30 years and specialises in the design and manufacture of high-quality furniture, exhibition stands, museum and store fit-outs.
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