Thousands of people across the country have threatened to stop paying their energy bills this autumn, as prices are expected to rocket again. A campaign group - Don't Pay UK - wants to encourage one million people to pledge to cancel their bills in an effort to force firms to reduce them.
The group claim that they have already gathered support from 80,000 people across the UK who are prepared to skip out on their bills this October. As well as the thousands refusing to pay their bills, the rising cost of living means there will be others who are unable to meet ends meet when it comes to their monthly expenses.
New dramatic forecasts from Cornwall Insights, published on Tuesday, August 9, predict bills will rise to £4,266 in January, before rising again in April to £4,427 - the previous forecast was for £3,729 in April. The company said these revised numbers were due to energy regulator Ofgem's "change in calculation methodology."
Read more: All the cost of living payments you will receive and when you will get them
This change in methodology refers to Ofgem's decision to change the price cap every three months, instead of six, and increased wholesale prices for its high forecast. Ofgem said the more frequent reviews allow energy companies to provide more accurate pricing for customers.
Tony, a volunteer with Don't Pay, told BBC Radio 4 as reported by The Daily Record: "The sums don't add up any more", and added: "I am quite frightened what's going to happen this winter." Tony said he's never not paid a bill before and that it is risky, but it could be a bigger risk to do nothing at all.
What could actually happen is a customer refused to pay their bills?
While the cost of living crisis already has millions of households in a financial squeeze, charities have been urging people to pay their bills if they can - and to get support if they can not. They warn that refusing to pay bills could lead to more issues down the road, as there is no legal precedent to do so despite the large number of people taking part in the Don’t Pay UK movement.
Charity group Citizens Advice urges people to contact their supplier or get advice from a third party including its own advisers. They warn on their website that additional interest can be added to any unpaid debt that a person owes.
There are also warnings that energy companies can obtain a court warrant to enter people’s homes and fit a prepayment card meter, also known as a 'pay-as-you-go' meter.
Debt charity Stepchange has warned about skipping bills, with Richard Lane, director of external affairs, telling the Guardian : "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." He adds that your supplier can also cut off your energy supply, although this is incredibly rare.
Currently, the majority of the UK’s energy suppliers do not detail their protocol for “non-payment” however, most do highlight what the steps are for energy debt. The supplier will most likely first contact a person, either through email or letters, about their arrears or they may send reminders that a person has an outstanding bill.
If the supplier does not hear back from a customer, then they will contact a person more directly to discuss the situation. If in debt, this would be where the customer and the supplier discuss and arrange repayment plans. In some cases, the energy company will send a person out to the property to see if they can find and discuss the options for repayment.
If this continues, the supplier can take the case to court to obtain a warrant to enter a person’s home. They may then also fit the property with a Pay As You Go meter to take a weekly amount to repay the debt. This however is usually after 28 days.
Richard Lane, director of external affairs at the debt charity StepChange highlighted to The Express that energy bills are classed as “priority bills” which means that there can be “severe consequences to missing or being late on a payment”.
Who are 'Don't Pay UK'?
Don't Pay UK is an anonymous group of people whose plan is to demand energy bills fall back to an affordable level. For the plan to work, Don't Pay UK want a million people to join them. The group is setting up email lists and is on Telegram, TikTok, Instagram, Reddit and Twitter to start telling people about this. Zoom calls are being organised, as well as in-person meet-ups. They are also printing flyers and stickers in a bid to bring people together.
A statement on the group's website reads: "We'll need people, organisations and community groups to do all of this too, building this up street by street, estate by estate and city by city. The first step is to get thousands of people like you to say you support the strike."
If government and energy companies have not reduced bills by October 1, the group says it they will take action by cancelling direct debits. They hope that by everybody doing this on the same day they will be able to send a strong message to energy companies.
Interested in more Money stories like this sent straight to your inbox for free? Sign up for our Money newsletter h ere.
Read next:
7 ways to save money when you are driving as petrol prices continue to hit people in the pocket
People in Wales are hugely sceptical about refusing to pay energy bills to protest price hikes
The reason experts are urging people to turn their boiler on in the summer
Millions of people who claim these benefits to receive £150 cost of living payment in September
