Late payment fees on electricity bills are an unnecessary cost to avoid when running your business. Unfortunately however, sometimes late penalties are unavoidable due to cash flow problems or other business issues. This article details the ins and outs of energy bill due dates, late payment penalties, and what you can do to avoid overpaying on your electricity bill.
Paying your electric bill on time is important to maintain uninterrupted service. But life happens, and you may find yourself struggling to make the payment by the due date. What are the consequences of paying late? And what can you do to get back on track? This article provides a comprehensive look at late electric bill payments.
Late Fees
The most immediate impact of a late payment is a late fee. This is an additional charge tacked onto your bill, typically a percentage of the amount owed. Late fees on electric bills tend to range from 1-5% of the balance due.
For example, if your electric bill is $100 and you pay after the due date, you may see a $5 late charge on your next statement. While $5 may not seem like much, late fees can add up over time and become an extra financial burden. Setting up automatic payments or carefully tracking due dates can help avoid triggering these unnecessary costs.
Credit Score Impacts
While a single late payment likely won’t devastate your credit, repeat tardiness can negatively impact your credit score over time. Electric and other utility payments are often reported to the credit bureaus.
Consistently making late payments demonstrates higher credit risk and can lower your score. A 30-day or 60-day late will cause more damage than paying just a few days past the due date. To protect your credit, do your best to pay on time every month.
Reminders and Warnings
Most electric companies will send a past due notice when you miss the first payment deadline This serves as a reminder to pay immediately and avoid potential disconnection You’ll usually get 10-15 days from the notice date to pay before additional action is taken.
If you cannot pay within the past due period, you may receive a disconnection notice indicating a service shut-off date. At this point it is critical to contact the electric company immediately to make alternate arrangements.
Payment Plans
If you’re struggling with a past due balance, ask the electric company about a payment plan. This allows you to pay what you can over time while maintaining electric service. Payment plans have affordable monthly amounts based on your financial situation.
For example if you owe $300 the company may let you pay $100 per month over 3 months versus the full balance. They want to work with customers, so take the initiative to call and explain your circumstances.
Financial Assistance Programs
You may also qualify for financial assistance to help cover electric bills through local nonprofit organizations or government programs. These include one-time emergency grants, discounted rates, and percentage-based bill reductions.
Electric companies can point you toward available assistance options. Having support during financial hardship can help avoid late payments altogether.
Service Disconnection
As a last resort, the electric company may disconnect service if a past due balance remains unpaid. Disconnections don’t happen immediately – there is a formal process that must be followed. Here are some key facts about the disconnection process:
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You’ll receive multiple notices explaining the need to pay before actual disconnection occurs. This gives you opportunities to take action.
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Electric service cannot be disconnected for nonpayment on weekends, state holidays, or after 2:00 pm Monday through Thursday.
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If you make a payment on the day of disconnection, service will be maintained (although a reconnection fee may apply if actual disconnection already occurred).
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There are special rules protecting ill and elderly customers from disconnection.
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Once disconnected, full payment of the past due amount is typically required for reconnection.
Disconnection is not ideal for either party, which is why electric companies make significant efforts to contact customers and offer payment alternatives before reaching this stage. Communicate with them early on if you are having trouble paying a bill.
How to Avoid Late Payments
No one wants the hassle and stress of trying to scramble to pay a late electric bill. Here are some tips to pay on time, every time:
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Enroll in auto-pay or bank draft so your monthly amount is automatically deducted each billing cycle.
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Use payment reminders – many electric companies let you opt-in for email or text alerts as bills come due.
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Mark due dates on your calendar so you remember to pay.
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Set up account notifications for when your statement is ready and provide an email address for paperless billing.
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Review monthly statements promptly to address any issues early.
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Sign up for budget billing to have a predictable amount due each month.
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Take advantage of customer service chat features in online accounts to ask billing questions.
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Provide accurate contact information so you don’t miss notices.
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Contact the electric company immediately if you anticipate payment challenges in a given month.
Paying your electric bill by the due date takes a little planning and organization. But putting in place some simple routines can help avoid the nuisance and potential consequences of late payments. Reach out for assistance if needed – electric companies would much rather help get your account current than disconnect your service. Stay in touch with them, pay what you can on time, and you’ll keep the lights on and avoid major disruption.
Paying Your Energy Bill Late
If you happen to be behind on your bills, the electric bill is one to prioritize paying first! When you do not pay your energy bills on time, utility companies and retail energy suppliers selling electricity in deregulated states will charge you for your overdue bills. And, these late fees can start to add up too! If you do not clear your balance in a given time period, you might even risk having your electricity shut off by the utility company for non-payment. It’s always best to seek help when you are behind paying your energy bill to avoid unwanted headaches.
Request More Time To Pay
When you know that you are not going to be able to make your payment on time, communication is key! It’s best to contact your utility provider before the bill is due to request more time to pay. Most companies will allow you a grace period where no late penalties are assessed. During and after the COVID-19 pandemic, many utility companies even allowed customers to enact payment plans and waived all late fees from their invoices.
What Happens If I Don’t Pay My Electric Bill? (Worst Case Scenario)
FAQ
Do late payments on an electric bill affect credit?
The three main credit bureaus don’t count rent, phone, electric, and other utility bills as credit accounts, so one late payment or on-time payments won’t usually hurt your score.
How late can you be on your electric bill before they shut it off in California?
Shut-Off TimelineDays from Bill Issue DateAction TakenDay 27$10 late fee assessed on unpaid amounts. Day 3610-day shut-off notice sent and $15 late fee assessed. Day 4448-hour shut off notice sent. Day 46Utilities shut-off.
Is it okay to pay bills late?
If you don’t pay after a set time period, your account will go into delinquency. So any late payment is bad, but the more late payments add up, the worse it is.
Can I get help with my electric bill in California?
