Forecasters are currently predicting that energy bills will skyrocket to £3,582 in October and rise even further to £4,266 from January and once again to £4,427 from April.
Many households are already facing financial struggles due to the cost of living crisis plaguing the country, accompanied by the rising cost of commodities and fuel. Furthermore, inflation is currently experiencing its highest point in 30 years, with the Bank of England warning households and businesses to prepare for a severe recession.
Because of this, many households are likely concerned that they will be unable to afford the skyrocketing costs of their energy bills and may be looking for solutions in the worst-case scenario. Fortunately, there are some steps consumers can take if they believe they won't be able to afford their energy bills.
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According to Citizen's Advice, the first thing consumers should always do is contact their supplier and see if there is a plan that can be implemented to pay what is owed. If consumers avoid negotiating with their suppliers, they risk having their energy supply disconnected.
However, if your supplier doesn't immediately disconnect you, you can still arrange to pay what you owe them which will protect you from being disconnected in the future.
Setting up a payment plan with your supplier
You should inform your supplier that you intent to pay off your debt in instalments as part of a payment plan. This means your supplier will require you to pay fixed amounts of money over a set period of time so you can pay what you can afford plus your current use.
When discussing a payment plan, your supplier must consider the following:
- How much you can afford to pay
- How much energy you'll use in the future
Citizen's Advice has a budgeting tool which can help you figure this out.
If you can't afford the agreed upon payment plan, you should talk to your supplier again, especially if you think they're charging too much. In this situation, you may be able to negotiate a better deal, if not, your supplier might install a prepayment meter in your property.
Paying off energy debt with benefits
Another option for paying off your energy debt is the Fuel Direct Scheme.
In this situation, a fixed amount will automatically be taken from your benefits to cover what you owe plus your current use. To be eligible, you must be receiving one of the following benefits:
- Income-Based Jobseeker's Allowance
- Income Support
- Income-related Employment and Support Allowance
- Pension Credit
- Universal Credit
Extra financial help available
Make sure to check if you are eligible for a grant from different energy companies - in many cases you can claim these grants without needing to be a customer. Furthermore, there are some charitable trusts which may help you pay off your debts.
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