Fuel poverty is a growing concern in the UK and more widespread than many realise. In 2008 around 4.5 million homes suffered from fuel poverty. A home is classified as fuel poor if more than 10% of its total income is used to keep the abode in a satisfactory condition, which includes lighting, heating and cooking appliances.

It is not just OAP’s who are thinking twice about turning on their gas boilers and suffering from energy price hikes. A growing number of fuel poor homes are made up of couples who don’t have children and single parent families.

So what can be done to avoid fuel poverty and disconnection?  

As with any sort of debt, if you find yourself falling behind on your energy bills the best thing to do is not bury your head in the sand. Give yourself the best chance of resolving the situation and speak to your supplier as soon as possible. By law your energy supplier has to follow certain processes before disconnection, so you should have plenty of time to pay off your arrears.

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

Although this process does look lengthy an energy supplier does have the right to speed up the procedure if your past payment history does not look favourable, or if you have failed to abide by a previous payment agreement. One thing to keep in mind is you can call your supplier at any time throughout the process to arrange a payment plan and stop proceedings.

In accordance with your energy suppliers License Condition they must take into consideration your financial circumstances and offer a payment plan which is within your means. If you feel the repayment plan is unfair you can re-negotiate, as there is no point agreeing to a plan you cannot afford.

Utility Bill Repayment Plans

There are a few options available when trying to repay your energy debts.

You can organise a short term plan if you are experiencing only a temporary cash flow problem. This involves moving your outstanding balance to your next bill.

In most cases your energy supplier will offer an instalment plan which can be scheduled over weeks or months. However they can refuse this option if you have broken an agreement previously.

A pre-payment meter can be an effective way to pay off your debt and ensure you do not fall into arrears again. You buy credit and top up your meter as you use your energy.

If you are worried about your bills and need help and advice you can contact Consumer Direct or visit their site www.consumerdirect.gov.uk.

Guest Article by Louise Goldstein