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If you have gas or electricity arrears, it is vital to attempt to sort out the problem immediately. If you do not come to an arrangement to pay your gas and electricity debts, you risk these services being cut off. You should therefore deal with the arrears as soon as possible to prevent the supplier from cutting the gas or electricity supply and deal with these debts before other debts such as credit card or catalogue debts, overdrafts or any personal loans.
If you are struggling with other debts other than gas or electricity arrears you should try and sort out all of them by getting expert advice fom an experienced debt adviser.
Paying Off Your Arrears
In the first instance you should contact your electricity or gas supplier straight away and come to an agreement about how to pay off the arrears especially if you are experiencing other debt problems.
As your supplier must follow standard license conditions on dealing with customers who are having payment difficulties you should be offered an arrangement to pay off the arrears at a rate you can afford.
In addition to this the supplier must offer you the method of payment which is the most suitable for your personal and financial circumstances. They must take into account your ability to pay.
If your fuel company forces you to makes payments that you cannot afford to make, it may be going against its license conditions and should be referred to Energywatch.
Contact a Debt Plan Direct adviser for advice that makes a difference. We will calculate a repayment schedule that you can realistically afford to pay.
Remember not to agree to pay an amount you can't afford. If you make an arrangement you can't keep to, you may be forced to accept a prepayment meter instead.
Paying in Installments
It is possible through a payment plan to pay for gas or electricity arrears in monthly installments. This will allow you to pay for any gas or electricity supply used via a credit meter.
Your supplier will work out the amount you have to pay on a weekly, fortnightly or monthly basis. This will include an estimated amount for the fuel you currently use and an amount for the arrears. Your supplier shouldn't try to get you to clear the arrears any faster than you can afford to pay.
Prepayment Meters
A prepayment meter will be installed by your gas or electricity supplier if you have not been able to keep up with the payment plan or you are facing disconnection. If you find you are in either of these situations you will need to accept the prepayment meter if you want to keep your gas or electricity supply.
A prepayment meter will allow payments to be made to pay for both the supply used and an amount for the current arrears. You pay for the fuel with a token or key (electricity) or a smart card (gas), which you have to get charged at local stores or garages. If you don't recharge your token, key or card, you will run out of fuel.
Again your gas or electricity supplier must make sure that the arrears repayments are at a rate that you can afford and in line with your income.
Deductions From Your Benefits
If you are in receipt of benefits it is possible to have the payments for the gas or electricity to come out of your benefits directly in small weekly or monthly amounts. This is known as third party deductions.
You must currently be getting income-based Jobseeker's Allowance, Income Support, or Pension Credit. The amount deducted is fixed by the Department for Work and Pensions (DWP). This method of paying off your fuel arrears may be cheaper and more convenient for you than using a prepayment meter. It also means you can't run out of gas or electricity, which can happen if you use a prepayment meter.
Grants to Pay Off Arrears
Some gas and electricity companies have set up independent charitable trusts which can give grants to some of their customers to help them pay for gas and electricity arrears.
For more information, visit www.edfenergytrust.org.uk or get the Utility Trusts and Schemes booklet from www.britishgasenergytrust.org.uk .
Disconnection
Your gas or electricity supplier cannot cut your supply without first sending you a disconnection notice. A disconnection notice cannot be sent until 28 days after they send your bill. They must also give you at least seven days written notice before disconnecting you.
It is unlikely for your gas or electricity supplier to disconnect the supply, as long as you have an affordable payment arrangement in place for the current use and a payment towards the arrears. This may mean having to accept the installment of a prepayment meter.
If you get a disconnection notice, get advice as soon as possible from an experienced adviser.
Some customers may be eligible for disconnection protection. This may apply to you if you:
- Are of pension age
- Have long-term ill-health
- Are disabled
- Have severe financial problems
If you're in one of these groups of people, make sure the fuel company knows this when you get in touch with them.
To work out how much you can afford to pay towards the arrears you can contact us for a personal budget analysis of your circumstances. There may also be benefits, which can be claimed to increase the family income.
Debt Plan Direct provides free, confidential, impartial and independent advice to help you solve problems
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