A campaign to cancel direct debit payments when the energy cap is raised has signed up more than 120,000 people.
The 'Don't Pay' initiative plans to get at least one million households to stop paying for energy by direct debit from October 1, when the cap rises to £3,549 for customers on standard tariffs who use an average amount of energy. The 80% increase from the current cap of £1,971 and lack of Government help sparked the protest.
Don't Pay says: "It's simple: we are demanding a reduction of energy bills to an affordable level. Our leverage is that we will gather a million people to pledge not to pay if the government goes ahead with another massive hike on October 1st. Mass non-payment is not a new idea, it happened in the UK in the late 80s and 90s, when more than 17 million people refused to pay the Poll Tax – helping bring down the government and reversing its harshest measures.
Read more: What is the Don't Pay UK campaign?
"Even if a fraction of those of us who are paying by direct debit stop our payments, it will be enough to put energy companies in serious trouble, and they know this. We want to bring them to the table and force them to end this crisis."
Customers who use pre-payment meters are not being asked to join the "strike" as their power can be cut off as soon as they run out of credit. But those who usually pay by direct debit plan are urged by the campaign to cancel their payments for October - as long as at least one million people agree to take part.
Don't Pay does warn people that taking part could affect their credit score, but says not paying energy bills is not a criminal offence so there is no risk of criminal records or prison time for nonpayment. Citizens Advice adds: "For most debts, it is not a criminal offence if you don't pay them."
However, Citizens Advice also warns potential bill strikers that there could be "consequences" for households who build up energy payment debt while acknowledging the campaign itself is a sign of how dire the Cost of Living crisis is.
Gillian Cooper, Head of Energy Policy at Citizens Advice, said: “We hear from people every single day facing desperate choices because they’re struggling to pay their energy bills. Many are simply running out of options. But it’s important to know that there can be serious consequences if you build up arrears. Your energy supplier can move you onto a prepayment meter or, in rare cases, even disconnect you.
“If you’re unable to keep up with payments, there are rules which mean your energy supplier has to help you. If you talk to them they might be able to offer emergency credit or a more affordable payment plan.
“This campaign is yet another indicator of the pressures people are under. The government must act again and provide more financial support so people can cope with spiralling costs.
“We’d also urge energy companies to do everything they can to help customers and not chase them for debts they can’t pay.”
Energy firms may attempt to force customers to have pre-payment meters installed if they cancel their direct debits without reaching an agreement with their supplier, which charge more per unit and must be topped up by customers if they want to use energy. Don't Pay suggests that energy companies would need a warrant to enter a home to fit a pre-payment meter against the customer's wishes, which is a lengthy process.
Failure to reach an agreement with a supplier may also result in them applying for a court warrant so they can visit the customer's home and disconnect their energy supply. This can be done remotely with smart meters, but legally energy companies must first visit customers to identify and assess their situation.
Richard Lane, director of external affairs for the Stepchange debt counselling charity, told the Guardian earlier this month : “Any arrears will be added to the meter and a set amount will be deducted each week. This means you must pay the arrears at a set weekly amount or lose the supply. Your supplier can also remove the meter and cut off your supply, but fortunately this is incredibly rare."
An Ofgem spokeswoman said: “We know that people are under huge pressure, but we do not think it’s in consumers’ best interest to not pay their bills, and most leading charities and consumer groups agree.
“The knock-on effects of not paying bills can be huge for people. They could lose their direct debit discounts or be forced to move to a pre-payment meter. It could also damage their credit rating.”
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