Facing financial hardship and struggling to pay your electric bill in full? You may be wondering if paying half your bill can help avoid shut off or late fees. Here’s what you need to know about making partial payments on your electricity bill.
The Benefits and Risks of Paying Half Your Electric Bill
Paying half your electric bill when you can’t afford the full amount seems like a logical solution. Here are some potential benefits as well as risks to understand:
Potential Benefits
- Buys you more time before a potential service disconnection
- Shows your utility you intend to pay something rather than nothing
- Allows you to pay what you can based on your current financial situation
- Helps chip away at your balance due a little at a time
Potential Risks
- You are still subject to late fees on the unpaid balance
- Your service could still be disconnected for nonpayment
- The unpaid balance continues to accumulate as debt
- It can negatively impact your credit score
So while paying half is better than paying nothing, it doesn’t guarantee uninterrupted service or waive late fees.
Policies Vary By Electric Company
Electric company policies regarding partial payment can vary. Some may allow it while others require full payment. Here are some key factors that come into play:
- Minimum payment thresholds – Some require 50-75% at minimum
- Fees for nonpayment of full balance – Late fees, reconnect fees, etc.
- Credit score reporting – Consistent partial payments could lower your score
- Disconnection timeline – Days or weeks before shut off after partial payment
The only way to know your electric company’s exact policies is to check with them directly. Don’t assume partial payment will suffice.
Strategies To Avoid Shut Off
If you simply can’t pay your entire electric bill, here are some proactive strategies to avoid disconnection
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Request an extension – Electric companies may grant 1-2 week extensions for bill payment if you contact them early on This buys you a bit more time
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Payment plan – See if they offer installment plans to pay your balance over 2-3 smaller payments.
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Energy assistance programs – Federal, state and local programs provide bill payment assistance if you meet low income requirements.
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Budget billing – Spreads your costs evenly over the year so you avoid much higher seasonal bills.
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Defer payment – Some electric companies allow deferred payment during winter months to avoid shut offs.
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Negotiate – Explain your financial hardship and negotiate a lower payment arrangement.
Alternatives To Paying Half Your Electric Bill
Rather than paying an arbitrary half amount, consider these proactive alternatives:
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Pay a smaller amount weekly or bi-weekly to chip away at the balance.
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See if a friend or family member can loan you the difference.
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Use a credit card or bill pay service to pay online if needed.
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Visit a walk-in payment center in person to pay cash.
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Cut back discretionary spending to put more toward your electric bill.
The bottom line is that paying half your electric bill provides no guarantee. Work closely with your electric company, utilize assistance programs, and explore alternatives to find a solution. Consistent partial payments should be avoided.
How the program works.
You pay just your current monthly electric bill, each month and on time. For each month that you pay your current bill, your electric utility company will wipe out 1/12 of what you owe them on your back bill.
For example, let’s say that you owe $1200 to the company on back electricity bills. Follow these steps:
- You sign up for the AMP.
- Then you pay your regular monthly bill to the utility company.
- Each time you make that monthly payment, your utility company will forgive or wipe out $100 that you owe them on your back bill.
So by making your monthly payments on time, your $1200 debt is wiped out in one year. You pay nothing more than your current bill!
NOTE: No more than $300 of debt can be wiped out each month. So, if you owe more than $3600, you can stay on the program for more than 12 months until your entire debt is gone.
How do I apply for AMP?
You can apply for AMP when you apply for LIHEAP. If you are already in LIHEAP, you can apply for AMP directly through your electric company. If you get your electricity through Central Maine Power, they have their own online AMP application. Call your utility company and ask to sign up for AMP. Or you may be able to find the application form on the company’s website.
This Will Help YOU Save THOUSANDS On Your Electric Bill!
FAQ
Can I pay my bill partially?
How late can you be on your electric bill before they shut it off in California?
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Days from Bill Issue Date
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Action Taken
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Day 27
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$10 late fee assessed on unpaid amounts.
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Day 36
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10-day shut-off notice sent and $15 late fee assessed.
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Day 44
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48-hour shut off notice sent.
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Day 46
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Utilities shut-off.
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How late can I be on my Alabama power bill?
Should I pay half of my electric bill?
While it’s a step in the right direction to pay half of your electricity bill, there may still be additional fees or shut-offs if you cannot pay the total balance. It may prolong the shut-off or reduce the costs, but ultimately you will need to pay the full amount you owe. With utilities such as electric bills, they will probably keep going up.
Can I make a partial payment on my electricity bill?
Yes, you definitely can, Many electricity providers allow their customers to make partial payment. Though the entire payment needs to be done on/before the billing date. You can pay the partial amount online and avoid disconnection of your electricity service.
Should you cut your electric bill in half?
The dreaded day of receiving a high electric bill is over! If you are ready to cut your electric bill in half, it’s time to increase your home’s efficiency! Your electric bill payment is probably one of the most expensive bills you have; this is especially true if you live somewhere with extreme climates.
Can I pay my electricity bill online?
Pay all your bills via the most reliable and safe NoBroker Utility Bill Payment Service Get your lights, wires, or appliances checked or installed safely by NoBroker’s electricians Can I pay half electricity bill online? Yes, you definitely can, Many electricity providers allow their customers to make partial payment.
What happens if I don’t pay my electric bill?
If your late payments eventually turn into missed payments, then the energy provider may issue a disconnect order. If your electricity does get disconnected, your account will most likely incur an additional fee in the form of a reconnection fee. How late can you be on electric bills before there are consequences?
Should I pay my electricity bill in installments?
Paying your electricity bills in installments gives you more financial freedom and enables you to control your spending more effectively while maintaining a constant supply of electricity. I once asked him, How can I pay half electricity bill online?