subject: Worried About Your Energy Bills? [print this page] Worried About Your Energy Bills? Worried About Your Energy Bills?
For some the cost of simply firing up their gas boiler and keeping it on is just too great. Are you worried about how you are going to keep the heating on in your home this winter? This guide will help you deal with the situation and hopefully avoid disconnection.
Fuel poverty has become a major issue in the UK. In 2008 4.5 million homes were considered fuel poor and many of these homes were made up of pensioners, single people under 60 and couples with no children. A fuel poor home can be defined as any household which has to spend more than 10% of its total income on fuel to keep their home in a satisfactory condition. Fuel poverty also extends to water heating, lighting and appliance usage for cooking.
If you find yourself in arrears the best thing to do is deal with the problem as soon as possible. Generally speaking you will be in arrears if you fail to pay your bill within 28 days. Your energy supplier does have to take certain steps before they can disconnect your supply.
The Disconnection Process
Day 1 - Bill received
Day 14 - Reminder letter
Day 28 - 2nd Reminder issued and outbound call
Day 35 - Final demand and pre-disconnection letter
Day 42 - 49 - Outbound calls
Day 60 - Debt advisory home visit
Day 67 - Warrant proceedings start
Day 129 - Warrant Executed
This process could be sped up if you have a poor payment history. However you can stop the proceeding at any time throughout this process by calling your supplier to arrange a repayment plan.
Your energy supplier must take into consideration your financial situation and ability to pay. They should also offer a pre-pay meter as an alternative and as a last resort to disconnection. If you find the terms of repayment plan unaffordable considering your financial situation you should notify your supplier that they must act in accordance with their License Condition. This stipulates they need to consider your ability to pay when setting up repayments no matter how long it takes you to repay the debt.
How to Repay Your Energy Debt
You can set up a short term arrangement if your situation is temporary. This would basically involve you paying the outstanding balance before your next bill.
An instalments plan is also another option which generally involves weekly, fortnightly or monthly re-payments. However if you have previously broken a payment plan your energy supplier can refuse this option.
A pre-payment meter can also be installed to help you re-pay your arrears. However if you have mobility problems this may not be a satisfactory solution.
If you receive benefits you can enter in to the Fuel Direct scheme. A deduction is taken from your benefits over a set period. The current level fuel direct payment level is 3.25 per week.
One of the main causes of the increase in fuel poverty is the rise in energy costs over the last few years. If you cannot afford to pay your energy bills you should call your supplier immediately. You can also contact Consumer Direct for advice via their site (www.consumerdirect.gov.uk).
