So, your electric bill comes due, and you’re a day late and more than a few dollars short.
Don’t panic if you can’t pay your electricity bill. You can get help and avoid having your service disconnected.
There are plenty of agencies and organizations that provide assistance paying utility bills because, unfortunately, it is an all too common experience.
The average electric bill in the U.S. is $112.59 per month. According to the Bureau of Labor Statistics, energy costs consume between 5% and 22% of a family’s monthly budget.
You can try all sorts of tips and tricks to lower that number, but even a relatively low bill can be a heavy burden for some families. Low-income families pay an average of 9.92% and as much as 22% of their income on electricity alone. That compares to a national average of 7.2%.
The rate is especially high in places with extreme weather, like Florida, which has three of the top four cities – Jacksonville, Miami and Orlando – with the most expensive electric bills for low-income families.
Typically, an electric bill is due 21 days after the meter is read. If it isn’t paid by the due date, you should receive a late notice that gives you five business days to make the payment. Afterwards, the utility company can disconnect your service with a few exceptions that vary from state to state.
Emergency Payment Assistance
It’s important to try to stay ahead of the game when you’re behind on payments. Use the 21 days to reach out to organizations and apply for assistance. If you come up to the five-day window, you’ll need to look for emergency payment assistance.
Do whatever you can to keep the power on. Once it’s turned off, the utility company will charge reconnection fees and could require a deposit to turn it back on.
Help paying utility bills can come from three different sectors:
- Government assistance
- Charity aid
- Utility company programs
A good first step is to check out this link on needhelppayingbills.com. They have a database of agencies searchable by state.
Low Income Energy Assistance Program
If this has become a reoccurring issue, you need to look into the government agency LIHEAP, which stands for Low Income Home Energy Assistance Program. Only 5.5 million people take advantage of this program out of a potential 15 million that would be considered eligible. The Office of Community Services, Division of Energy Assistance said it granted $3.03 billion in funding for LiHeap in 2017.
LIHEAP’s offices can either provide funds to offset the cost of heating/cooling bills in the form of a grant (find out how much you can qualify. Or, they can “weatherize” your home to make it more energy efficient through the Weatherization Assistance Program (WAP). That would include sealing doors or windows, installing insulation and fixing or replacing a broken furnace or air conditioner.
How to Qualify for Energy Assistance
Eligibility for this program varies by state, but generally it starts at the $17,820 income level for a one-person household (150% of the federal poverty line). Then add $6,240 per person in the household, so a family of four would have to earn less than $36,540 (6,240 x 3 + 17,820 = 36,540) to qualify. You could be automatically eligible If you are currently enrolled in SNAP, Supplemental Security Income (SSI) or Temporary Assistance for Needy Families (TANF) programs.
States also have their own forms of utility assistance. Ohio, Colorado, New Jersey, Nevada, Illinois, Pennsylvania, New Hampshire and Maine all have various forms of Percentage of Income Payment Plans (PIPP).
The idea is that a customer pays a fixed percentage of their income to their gas or electric bill, and if they make full and on-time payments, the remaining balance is forgiven at the end of each month.
Your local LIHEAP office should have more information on state-run programs like PIPP.
Enrolling in LIHEAP will help in the long term, but if you’re in danger of having your lights cut off, you need help right away. Local churches and social service agencies can provide the short-term funds to keep your utilities running.
When you’re behind on your bills, the last thing you want to do is put them on a credit card. The small debt will get compounded and make the situation worse. If debt got you here in the first place, you should look into credit consolidation help from a nonprofit agency as a way out. In the meantime, take advantage of the aid that is out there.
Dialing 2-1-1 is the financial equivalent of 9-1-1 for this type of emergency. A regional operator will direct you to local organizations that can help with a number of problems including utility assistance.
These are some of the organizations you will be referred to:
- Salvation Army
- Catholic Charities
- Love Inc.
- Lutheran Social Ministry
- Vincent De Paul
- Jewish Federation of North America
- Urban League
There are many more, especially at local churches, who usually have specific ministries within the church that cater to financial crisis situations. Call the churches in your area and ask if they have a family assistance program that could keep your utility from being shut off.
Utility Company Programs
The utility company itself will often work with its customers so long as you communicate your situation with them.
Many companies have payment plans designed for these problems. They might take your balance and add a small amount to future monthly bills until it’s paid off. Another option is to pay one fixed rate determined by your average utility bill the last 12 months. This should help you budget more efficiently and avoid an enormous bill in the hot or cold months.
Some utility companies partner with local charities and can help you find assistance. Duke Energy for example has an Energy Neighbor Fund that works in conjunction with local agencies in the state of Florida.
The Dollar Energy Fund works with 31 different utility companies around 12 states to provide aid in the form of grants similar to LIHEAP.