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Gas and Electricity arrears
Your Gas and Electricity bills are priority debts because if you fail to make the regular payments, the Gas and Electricity companies have the power to cut off your supply, and without having to involve a court.
You should be given plenty of warning before the gas or electricity company actually cuts off your supply, but it is important to deal with your Gas and Electricity arrears quickly, as your supply could be cut off within a matter of weeks once you have been give notice.
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When should I contact my supplier?
Immediately! Do not delay in contacting your supplier to explain your difficulty. It is never too late to come to an arrangement. Where possible, you should complete a personal budget to support the offer you are making – if you are feeling overwhelmed and you cannot face contacting your supplier, then you should seek professional advice straight away – for more information on where to get advice, please click here
How much will I have to pay?
There is no set amount, but you will need to make a payment which will cover the costs of the fuel that you are continuing to use, plus an amount to pay off the arrears on the account. Your supplier should allow you to pay off your debt at a rate that you can afford.
How do I make an arrangement?
If you are in arrears with your Gas and/or Electricity payments, you will be expected to repay them within a reasonable amount of time. Gas and Electricity bills are normally issued quarterly, and the supplier will normally want the bill to be paid before the next bill is due – however, you can ask to pay your bills on a weekly, fortnightly or monthly basis, whichever suits you best. In order to make a payment arrangement, you should:
- Contact your fuel company – either by phone or in writing, and explain your problems. If the first person you speak to is unhelpful, ask to speak to someone more senior (such as a supervisor or manager).
- Use your personal budget – Your personal budget can be used to support your offer of payment. This must cover the cost of the fuel you are using (this should be included in the ‘expenditure’ section of your budget) plus an amount off the arrears (this should be included in the ‘priority debts’ section of your budget).
- Ask your supplier for a copy of their Code of Practice – This will explain your rights and responsibilities and can give some protection to pensioners, people with disabilities and other people on low incomes.
- Credit Agreements – If you have a credit agreement with your supplier for goods that you have bought, such as a cooker, ask the company to separate your fuel account from your credit account. You cannot be cut off for arrears that have arisen from a credit account.
Start paying what you have offered even if the supplier does not agree to your offer. Do not offer to pay more than you can afford towards the arrears. All fuel companies should agree to accept an offer of repayment that you can afford under their code of practice.
How can I avoid being cut off?
If you have received notice that you are going to be cut off, contact your supplier immediately. You must keep paying for the fuel you are using, plus an extra amount off your arrears while you try to come to an agreement.
Your gas or electricity company should accept one of the following methods of repayment as an alternative to cutting off your supply:
- Instalments – You can arrange to pay your bill in weekly or monthly instalments to clear the whole amount before the next quarterly bill arrives.
- Budget plans – The supplier will work out how much fuel you use throughout the whole year and calculates a fixed amount that you will be expected to pay on a weekly, fortnightly or monthly basis. If you cannot afford the amount that the supplier is asking you to pay under the plan, you can ask for a special arrangement. The supplier should accept a rate of payment which is based on your circumstances and your usage, even if this means spreading the payments over a longer period of time.
- Pre-payment meter – You can arrange to pay for the fuel that you are continuing to use plus an amount you can afford to clear the arrears through a token, card, or coin meter – however, there can be drawbacks to using a pre-payment meter, such as if you are unable to buy a token or card, you will be without a fuel supply. If in doubt, seek advice.
- Direct payments from Income Support or Job Seekers Allowance – If you are receiving Income Support or Income-based Job Seekers Allowance, it may be possible to arrange for the Benefits Agency (Jobcentre Plus office) to take weekly deductions from your benefit and pay them directly to your supplier. This amount should cover the cost of the gas and electricity you are continuing to use plus a standard amount off the arrears each week – contact your local Jobcentre Plus office and tell the fuel company that you are doing this.
- Charitable assistance and other help – It may be possible to obtain help to pay your arrears from a charitable organisation or a grant or loan from the Benefits Agency, for example a Community Care Grant or a Trust Fund payment. However, there are no guarantees that your application will be successful, so it is important that you try to negotiate a suitable method of repayment with your supplier before you apply for charitable help.
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