Energy firms allowed to start chasing unpaid bills – how to get help
ENERGY suppliers have been given the green light to start chasing unpaid bills again from July 1.
It comes after struggling customers had their energy bills put on hold during the beginning of the coronavirus crisis.
⚠️ Read our coronavirus live blog for the latest news & updates
In a recent letter to suppliers, regulator Ofgem said firms no longer have to offer coronavirus payment holidays.
Although, they've been warned against using aggressive debt collection.
It comes after suppliers signed up to a voluntary agreement with the government in April to support vulnerable customers during the pandemic.
One of the terms of the agreement was that suppliers should consider reassessing, reducing or pausing debt repayment and bill payments.
How to get help with your energy bills
FALLING behind on your energy bills can be extremely stressful.
If you’re struggling to pay what you owe, contact your supplier as soon as possible.
Your provider has to help you come up with a solution, and you should be able to negotiate a deal that works for you both.
One option is to agree a payment plan where you pay off your debts in affordable instalments.
Ofgem told The Sun it expects suppliers to treat customers fairly and take into account their ability to pay when setting repayment arrangements.
You may also be able to pay off your debts directly from your benefits through the Fuel Direct Scheme.
A fixed amount will automatically be taken to cover what you owe plus your usage.
To be eligible, you must be getting one of the following benefits:
- Income-based jobseeker’s allowance
- Income support
- income-related employment and support allowance
- Pension credit
- Universal Credit (but only if you’re not working)
If you cannot come to an agreement with your supplier, they may try to force you to get a prepayment meter installed.
In very rare cases, where you refuse to negotiate, your supplier might threaten you with .
Ofgem said suppliers must highlight support available to customers as well as tariffs that may be better suited to your needs and circumstances.
Jonathan Brearley, chief executive of Ofgem, said: "We recognise that suppliers cannot extend unlimited credit to customers - nor is this in customers' interests overall - and we anticipate suppliers will begin to restart debt management activities that may have been paused during the immediate crisis.
"We expect suppliers to ensure that any debt management processes are fair and give careful consideration to the customer’s circumstances and ability to pay.
"We will not tolerate sharp practice or aggressive debt collection and suppliers could face enforcement action where this is the case.
"Suppliers need to consider how their approach to debt management should evolve going forward as they continue to deal with customers financially impacted by the COVID-19 crisis."
If you're struggling to pay your bills, check out how to get help above.
Ofgem said customers should be able to contact their provider by phone, email or other digital means without problems.
The regulator also said suppliers should be prepared for "significantly greater" contact volumes, and have plans in place for this.
Plus, it added that coronavirus disruption no longer will be counted as an "exceptional circumstance" that would allow firms not to pay compensation if they didn't meet guaranteed standards of service.
That means that if, for example, an energy firm misses or cancels an appointment, it'll generally have to pay compensation to customers.
Natalie Hitchins, head of home products and services at Which?, said: "The temporary freeze on debt collection will have been a relief for many energy customers who have been financially impacted by the pandemic.
"However, this latest update from the regulator should not be an excuse for suppliers to start hounding customers who may not be able to afford repayments yet.
"We expect energy suppliers to adopt a flexible approach and work with customers to agree on a repayment plan they can afford."
Most read in Money
Energy prices for suppliers have nearly halved to hit an all-time low, but the savings aren't being passed on to customers
READ MORE SUN STORIES
Instead, energy bills have soared by £32 a month during lockdown – we explain how to save money.
In April, energy firms were urged to write off debts for low-income families during the pandemic.