(PA)
(Picture: PA Wire)A grassroots campaign group, Don’t Pay UK, is calling on households to not pay their energy bills in a protest against Ofgem’s planned energy cap hike in October, amid the cost of living crisis.
But a debt charity has warned energy consumers of the severe consequences they could face if they don’t pay.
According to Don’t Pay UK, more than 90,000 people have pledged to cancel their direct debits on October 1 if the price hike goes ahead.
The campaign group is aiming for a million people to join the cause, and the plan is that the “strike” will only go ahead if the campaign reaches this number.
However, anyone considering refusing to pay their bills should know the consequences. Find out what you need to know below.
What happens if you don’t pay your energy bills?
Debt charity Stepchange has warned of the serious consequences households could face for not paying their bills.
Richard Lane, director of external affairs at Stepchange, said: “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.”
He added: “If you’ve fallen behind with your household bills, and are worried about how you will pay, it’s important not to wait to get help.
“Contact your supplier to let them know you’re struggling, they may be able to offer support and inform you about any available grants to pay off a utility bill, or negotiate an affordable payment plan.”
But what will energy companies do if you refuse to pay your bills?
Energy companies will first attempt to contact a customer who hasn’t paid their bills to try to claim the money they’re owed. But if they can’t get in contact, they may take further steps to reclaim the money.
Energy companies may pass customers’ information to a debt collection agency, apply for a warrant to install a Pay as You Go meter, or switch the smart meter to a smart Pay as You Go meter remotely.
Households may also face additional charges if the energy company has to take any of these steps.
For example, British Gas says it may charge £13 for debt collection, £39 for visiting the customer’s home, and £94 to carry out a warrant and fit a Pay as You Go meter.
The energy company says it will only consider disconnection after it has “explored all other options.”
Furthermore, refusing to pay your energy bills can impact your credit score, which can affect your ability to take out loans and mortgages.
