Failing to pay your electricity bill can result in serious consequences From late fees to shut offs, this article explains what happens when you don’t pay electric bills and provides tips to avoid service disruptions.
Overview of Nonpayment Issues
Electricity is an essential utility for any home. However, bills can sometimes be overlooked or difficult to pay on time. Here’s what typically happens if you fall behind on electric bill payments:
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Late payment penalties and fees added to your account.
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Disconnection warning notice sent if account is delinquent
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Electric service shut off due to nonpayment after warnings go unresolved
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Restoration fees charged to reconnect service once paid.
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Potential credit damage if sent to collections.
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Legal action in some cases to recover unpaid balances.
Utilities like electric companies have procedures in place to collect overdue payments. Failing to pay will progress through various stages which gives opportunities to get caught up before the most severe consequences occur.
Late Payment Penalties
If your electric bill is not paid by the due date, you can expect late fees applied to your account. These penalties are typically a percentage of the overdue balance. For example:
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Georgia Power – $10 or 1.5% of past due amount
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ConEdison (NYC) – 1.5% of unpaid balance
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PG&E (California) – 0.8% late fee
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Duke Energy (Midwest) – Varies by state from $10 to 1.5%
Repeated late payments will result in higher accumulated fees. Some utilities may waive fees upon request for first-time offenses. But recurring late payments often incur charges.
Disconnection Warnings
If a delinquent balance remains unpaid, electric companies issue a disconnection notice warning of an impending service shut off. These warnings come via mail, phone, email, and on printed bills. Disconnection warnings provide a new due date (typically 10-15 days out) to pay the past due amount before shutdown.
This gives customers facing temporary hardships extra time to pay and avoid disruption. However, if the account remains unpaid after the disconnection notice expires, the utility will proceed with shutting off service.
Electric Shut Off Due to Nonpayment
Utility companies can lawfully disconnect electric service for nonpayment of bills. After receiving final warnings, a remote shut off occurs on the date specified. The power could go off anytime on that date without another notice.
Service interruption due to nonpayment usually occurs Monday through Thursday during business hours. Shut offs do not happen on weekends or holidays in most cases.
Power remains off until the past due balance gets paid. Only the delinquent portion needs paid to restore service. However, customers must also pay a reconnection fee.
Reconnection Fees
In addition to paying overdue bills to have electricity restored, utilities charge a reconnection fee that must be paid. This covers the utility’s costs for manually turning your power back on.
Reconnect fees range from $30 to over $100 depending on the provider and region. In some cases, same-day reactivation fees are higher than next-day service restoration.
Payment arrangements may be available if you cannot afford the full restoration fee immediately. But service won’t resume until any agreed installments get paid.
Long-Term Impacts of Nonpayment
Besides immediate power shut offs, ignored electric bills can negatively impact you long-term:
- Damage to credit scores and rental/employment background checks
- Potential debt recovery litigation
- Increased security deposits for future service
- Ineligibility for payment assistance programs
- Permanent disconnection without full repayment
The effects worsen the longer an account goes unpaid. Avoid reaching the collections or legal stage by addressing electric bill issues promptly.
Avoiding Disconnection of Electric Service
No one wants the major disruption of losing electric service. Here are some tips to maintain good payment standing:
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Contact the utility immediately if you anticipate payment difficulty due to job loss, illness, or other hardship. Payment plans or extensions may be available.
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Enroll in budget billing to get an average monthly payment amount and avoid seasonal spikes.
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Apply for financial assistance through state/federal programs if eligible.
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Consider a credit counseling agency if you are overwhelmed with debt.
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Sign up for automated payments from your bank account to ensure on-time payment.
Take proactive steps as soon as possible if falling behind on electric bills. This can help you get back on track and avoid the negative ripple effects of nonpayment down the road.
What are typical late fees for missing an electricity bill payment?
The type and the number of late fees vary by state and energy provider. A late fee may be assessed as a percentage of the total bill or a flat fee. Percentage-based costs can be anywhere from one percent to 12 percent, and flat fees may range from $5 to $30. Late payments can accumulate and cause a household to fall into a downward debt spiral. If you are having trouble paying your utility bill, you should know that options are available to you .
How late can you be on electric bills before there are consequences?
Most electric bills are issued 21-days after a meter is read. Once the electric bill has been issued, a 30-day grace period is given to allow the homeowner to pay the bill. If the account is not paid in those 30-days or by the due date shown on the electric statement, consequences can follow. As discussed before, the most likely outcome for a late payment made after 30-days from when the electric bill was issued is the inclusion of a late fee on the next bill. If late payments turn into missed payments, more costs will follow, and a disconnection order could be filed. Technically, a disconnection order could be issued within a few days or weeks from the missed due date. Some states that have harsh winters may have different policies regarding disconnection orders being filed in the winter months .
What Happens If I Don’t Pay My Electric Bill? (Worst Case Scenario)
FAQ
Does not paying an electric bill affect your credit?
What happens if you do not pay your bill?
How late can you be on your electric bill before they shut it off in Texas?
What happens if you don’t pay your electricity bill in the USA?
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 if I’m still having trouble paying my bills?
If you are still having trouble paying your bills after making changes, you should contact the utility provider to let them know. In many northern states, it’s illegal for a utility company to cut off electricity in the winter, but that doesn’t mean you won’t have to pay the bill at some point.
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 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 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.