What you can do if you’re unable to pay your energy bills

October saw a decrease in annual energy expenses, but costs are still significantly higher than in previous years.

The energy regulator Ofgem strengthened regulations to safeguard consumers after some individuals who were having financial difficulties were compelled to switch to more costly prepayment meters.

In October 2022, the government introduced the Energy Price Guarantee. It took the place of the former Ofgem energy price cap, capping the yearly energy bill of a typical dual-fuel household at £2,500.

This was maintained until June 30, 2023, when the Ofgem cap was reimposed, resulting in an average annual energy bill of £2,074.

The average annual payment will drop to about £1,923 under the most recent price cap between October and December.

Attempt to force the installation of a prepayment meter or convert an existing smart meter to prepayment mode.

Rarely, you may receive a disconnection warning if a payment isn't paid after 28 days, although usually you'll be offered a meter first.

Providers may provide your information to a debt collection agency; however, you may incur additional fees to defray these costs.

Additionally, a lot of providers impose late fees.

The most affordable method of paying for gas and electricity is typically by direct debit. Future bills will probably be higher if you cancel a direct debit.

In addition to harming your credit score, nonpayment might make it more difficult for you to get loans.

 

Guidelines for prepayment metres?

Following an investigation by The Times that revealed debt agents working for British Gas had unlawfully broken into the homes of vulnerable people in order to install metres, the regulator Ofgem reviewed the use of prepayment metres.

Following this, energy suppliers were prohibited from requiring a pre-payment metre from a customer while Ofgem conducted an investigation. According to the regulator, businesses can now resume the practice, but not before obtaining a court warrant and its consent.

Ofgem thinks suppliers ought to be able to collect their outstanding debts. New regulations, however, require suppliers to contact clients at least ten times prior to installing a metre in order to give them additional opportunities to pay off their debts. In addition, a "site welfare visit" is required. No company, according to Ofgem, has yet passed its new, more stringent tests.

 

Can't Afford your bills?

Double-check the direct debit.

Your supplier may lower your bill if its estimate of your annual energy consumption is higher than the actual amount used. Your monthly payment is determined by your estimated annual energy use.

A flexible monthly direct debit where you only pay for the actual amount you use is another option available to you. Regular readings or a smart meter are needed for this.

But since the winter months account for two-thirds of petrol usage, be sure you know the consequences of cutting back on payments in the warmer months.

 

Make any necessary payments

Request an "able to pay plan" from your supplier based on your financial situation if the direct debit is reasonable but you are unable to meet it.

Your arrears will increase more slowly if you make a monthly payment, even if it's less than what's owed, and your supplier might be less concerned about your debt.

It might be possible for you to have your name added to the list of households eligible for additional support known as the Priority Services Register (PSR).

Pensioners, expectant mothers, parents of small children, and individuals with disabilities are all eligible.

If you depend on your energy supply for medical reasons, Ofgem also advises you to ask your supplier to add your name to the Network Operator Register.

You must get in touch with both of your gas and electricity providers if you have separate ones.

Arrears are not waived just because you are on the PSR. However, it does indicate your vulnerability, which your supplier ought to consider.

 

Make sure whether you are receiving additional government assistance

Pensioners, individuals receiving certain disability benefits, and households receiving means-tested benefits can all apply for various forms of government assistance to help with energy bills.

Some eligible groups will receive their next payments between October 31 and November 19, 2019.

Pensioners, individuals receiving certain disability benefits, and households receiving means-tested benefits can all apply for various forms of government assistance to help with energy bills.

Some eligible groups will receive their next payments between October 31 and November 19, 2019.

(Sources: bbc.co.uk)