Failing to pay your monthly electric bill can have serious repercussions While an occasional late payment may just incur a small penalty fee, ongoing nonpayment can result in power shutoffs, damage to your credit, and even legal action This guide will walk through the typical consequences of not paying your electric bill and provide tips for avoiding shutoffs.
Service Shutoff
The most direct result of not paying your electric bill is having your power disconnected by the utility company. Here’s what you can expect if you miss payments:
-
Shutoff Notice – After missing a payment, you’ll receive a shutoff notice stating a deadline to pay before disconnection This is usually 15 days after the notice is issued
-
Disconnection – If your balance isn’t paid in full by the shutoff date, a technician will be dispatched to manually disconnect your electric meter. This leaves your home without any power.
-
Reconnection Fee – To restore service after a shutoff, you must pay the full past due balance plus a reconnect fee. This fee ranges from $30 to $150 in most areas.
-
Ongoing Nonpayment – If you remain unable to pay after a shutoff, the utility company may refuse to restore your power until the balance is paid. Extended outages exceeding 30 days can prompt legal action.
Losing electric service poses safety risks and makes daily life extremely difficult. Do everything possible to avoid a shutoff by paying on time or arranging alternate payment plans if struggling.
Late Fees
When a bill payment is late, the electric company will tack on a late fee. This extra penalty charge is meant to discourage late payments.
-
Late fees range between 1-5% of the unpaid balance. Expect at least a $10 late fee up to around $30.
-
If already late on a previous bill, the late penalty may double on subsequent late payments.
-
Late fees accumulate each month you fail to pay on time. Just one or two can add up to hundreds in extra charges annually.
Paying late frequently shows financial irresponsibility. It’s best to pay on time each month to avoid all late penalties.
Collections & Credit Damage
If electric bills remain unpaid for an extended period, the account will be sent to collections. This means a debt collection agency takes over efforts to recover the amount owed.
Consequences of having an unpaid electric account in collections include:
- Multiple phone calls from collection agents demanding payment
- Threats of wage garnishment or asset seizure if balance not resolved
- Lawsuit against you for repayment by the collection agency
- Up to 100-point hit to your credit score that remains for 7 years
Avoid collections and credit score damage by addressing unpaid electric accounts immediately.
Legal Action
As a last resort after all other efforts to collect fail, the electric company may pursue legal action for chronic nonpayment. This can include:
-
Filing a lawsuit for repayment – If they win in court, your wages or assets could be seized to cover the debt.
-
Reporting nonpayment to credit bureaus – Unpaid electric bills will show on credit reports and severely lower your credit score if reported.
-
Charging with “theft of services” – In some areas, theft charges can be filed for using electric service without paying. This results in fines or even jail time in extreme cases.
-
Disconnecting service permanently – Utility companies aren’t obligated to restore power after lengthy nonpayment. They may refuse reconnection until the account is settled.
Avoid the headaches and legal consequences of unpaid electric bills by staying current on your payments each month. Monitor electric usage and reach out immediately if you anticipate falling behind on payments. Most electric companies will work with you on alternate payment plans or extended due dates if communicated proactively. Letting large balances pile up without addressing them is when harsh legal actions become likely.
Loss of Other Services
Some utility companies offer bundled services like water, gas, phone and television in addition to electric. These services may also be disconnected if your electric bill is severely past due.
The same potential credit damage and collections efforts could result from nonpayment of bundled utility bills. Be sure to pay all utility bills, not just electric, to avoid comprehensive service loss.
Tips to Avoid Shutoff Due to Nonpayment
It’s easy to overlook paying bills when money is tight. But ignoring electric bills just leads to worse outcomes. Use these strategies to stay current on payments and avoid shutoffs:
-
Contact your electric company immediately if struggling to pay. Discuss hardship assistance and alternate payment plans. Don’t wait until after the due date.
-
Prioritize paying electricity first before any non-essential spending. You can live without cable or dining out, but electricity is a necessity.
-
Apply for government and nonprofit bill assistance programs if eligible. Local energy assistance funds may cover part of your bill.
-
Conserve energy to lower your monthly electric usage and bills. Turn off lights, adjust the thermostat temperature, and unplug devices when not in use.
-
If facing financial hardship, call 211 to learn about support services like rental and food assistance to help free up money for utility bills.
-
Consider negotiating lower due date if the current one always falls at an inopportune time each month. Most electric companies will work with you on a date change.
Don’t let unpaid electric bills spiral out of control. Being proactive and communicating with your utility provider can help avoid power disconnection and further debt. Maintaining electric service protects your safety, comfort and daily routine.
Will late payments on utility bills hurt your credit score?
While your electric bill is not a loan or line of credit, it is an account you signed up for and are responsible for paying for. If your electric bill is late, the utility company probably wont report it. Therefore, your credit score will likely not be affected. However, if your account becomes too far past due, it could impact your credit score. If you fall behind on monthly payments, contact your provider and acknowledge that you are trying to pay. Ask if there are ways they can help you catch up.
There may be government assistance programs or payment plans available to help. If you are behind on electric payments, you may be more concerned with your electricity being shut off rather than your credit being affected. In reality, its more likely that your power will be shut off than your credit be affected. If your account is delinquent, you may have to pay penalties if you move or try to open a new account .
How late can you be on your electric bill before shutting it off?
Shut-off notices issued by energy companies can occur when an electric bill becomes past due. An electric account typically becomes past due 30-days after it is issued. A shut-off notice most likely will be sent to the residence before the energy company sends a technician to the property to enforce the shut-off notice .
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.