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'I can't afford to turn the lights on because I owe my energy supplier £2,100'
I’m £2,100 in debt to my energy supplier Octopus and I’m struggling to get them to put me on a payment plan that I can afford.
I’ve been asking for help for months but nothing seems to be improving.
I live on my own and I’m on the minimum wage in an all-electric flat. When the pandemic happened I lost my job and was living on £100 a month. I had to survive on foodbanks.
I’m freezing and having to worry about cooking, washing, heating, turning on the lights and everything else going up even more on top of what I owe.
I’m in despair in financial difficulties and depressed due to stress and anxiety. I just can't get ahead with debts still in place from these companies.
What can I do?
Mirror Money's response
Energy bills have been spiralling for almost a year now after demand for gas surged after Covid, restrictions eased - and prices aren’t likely to calm down soon.
The regulator Ofgem has said prices will rise by an average of £693 in April in line with the latest cap – that’s a 54% rise, but it’s linked to your actual usage, so use more and it’ll rise even higher and vice versa.
The government has promised a £200 energy discount to help households from October. Unfortunately, this money isn’t a grant, you’ll have to pay it back over five years, with £40 added to consecutive bills.
That's helpful for those who may struggle to heat their homes next winter, but what happens to people who like you have already fallen behind because of rises in the past year?
If you can’t pay your energy bill, the first thing you should do is contact your energy supplier – which is exactly what you did. They must put you on a reasonable payment plan, explain any relevant grants and make sure you’re claiming all the help you can get.
Octopus Energy had followed these correct steps, but because your bills had risen so much, you were struggling to keep up with your payment plan.
You already receive the £140 Warm Homes Discount and last year it paid you £100 from its financial hardship fund 'OctoAssist' to help bring your bills down.
The company agreed to review your case on the back of our concerns that you are avoiding basic things like turning the lights on and aren't heating your home because you’re worried about the costs.
As a result, it has now agreed to wipe the £2,100 debt, allowing you to start afresh.
An Octopus spokeswoman told me: “Thanks again for bringing Amy’s case to our attention. We are very sensitive to customers who are struggling to pay their bills and do everything we can to support them.
“We’ve also shared energy saving advice with Amy and sent her details of debt charities she can get in touch with to receive further support.
“We’ll keep an eye on Amy’s account and reach out again should she build up a negative balance again to see what else we can do to help her lower her bills.”
If you’re behind on your bills, your supplier must give you information about how to avoid debt, how to repay your debt and a list of the money you currently owe.
If you can’t pay your bill, they should put you on a repayment plan instead of demanding a lump sum.
Suppliers must work with you to agree on a plan you can afford under Ofgem rules. This includes reviewing any previous arrangements that have not worked. They should also give you information on any helpful hardship funds you can apply for.
You should also ask if you qualify for its Priority Services Register. This is a free service provided by energy suppliers and network operators, which offers customers extra help and support in vulnerable situations. You qualify if you are a pensioner or have any impairments or disabilities.
One thing you shouldn’t worry too much about is being cut off as this is an extremely last resort.
Even if they were to disconnect you, they would have to send you a disconnection notice at least 28 days after your last energy bill. Your supplier must also give you at least seven days written notice before they can cut you off.
And, if you’re on priority register, they're simply not allowed to cut you off in the winter months.
There are also grants you might be able to access.
If you can’t pay your energy bills the government offers various grants and schemes to help. For example, if you were born before August 1953, you are likely to be eligible for the Winter Fuel Payment.
You may also qualify for Cold Weather Payments. This means that when the weather drops below zero degrees for seven consecutive days, you could receive £25 per day towards your energy bills.
The Warm House Discount aims to alleviate financial pressure for those at risk of poverty. It comes in the form of a rebate on the energy your household uses between October and March.
Like Octopus Energy, some suppliers also offer grants to help pay your energy bills.
You don’t have to be a customer to be eligible – anyone can apply. Suppliers include: British Gas Energy Trust, EDF Energy Trust, E.on Energy Fund, nPower Energy Fund, Ovo Energy Fund, OctoAssist, Scottish Power Hardship Fund and SSE (Southern Electric) Priority Assistance Fund.
The next question of course is whether you should switch to a cheaper tariff if your bills are too much.
In the past, consumers have been encouraged to shop around when bills rise.
But at the moment better offers - especially fixed deals - are not available.
People already on fixed deals are advised to stay put.
Other households are being encouraged to improve the energy efficiency of their homes.
We’ve got a list of simple changes to our homes and habits that could offset some of the current price rises here.
Disclaimer
Money Troubles aims to be informative and engaging. Though it may include tips and information, it does not constitute advice and should not be used as a basis for any financial decisions.
All information in this post was correct at date of publication.
