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Glasgow Live
National
Katie Williams

What happens if you don't pay your energy bills as campaign rallies support

Households are being warned of the serious consequences that could follow if they don't pay their energy bills.

Energy bills are expected to hit £4,200 in January according to the latest data with campaign group Don't Pay UK are rallying support.

Don't Pay UK are urging households to refuse to pay energy bills on October 1 as the new price cap is set to rise again by a staggering 81 per cent, pushing the yearly bills to £3,582. They are then set to jump again in January as Ofgem have confirmed they will change the price cap every three months, rather than six.

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Don't Pay UK is aiming to get one million households to pledge to not pay their bills in an attempt to force energy companies to reduce bills to a reasonable level. The same tactic was used in the late 80s and 90s in protest to PM Margaret Thatcher's poll tax in which 17 million people boycotted the cost.

However, legal experts are warning of the implications that could follow if people don't pay their bills. Those who choose to take part in the boycott could face legal consequences as they are breaching their contract and the energy provider is then in their legal right to take action.

The energy provider may also try to force you to take on a prepayment meter installed and in the most serious circumstances they can threaten to cut your supply if you haven't paid in 28 days.

However, energy providers can't disconnect energy between October 1 and March 31 if you've reached State Pension age, or if you live alone, or only live with other people who have reached State Pension age, or children under 18-years.

Following that, your details could be passed on to a debt collection agency, according to charity StepChange, and there could be fees to cover the cost of this. On top of that there will likely be late fees added to your bills.

Finally, credit rating could be damaged if bills are not paid.

Legal experts at BPP University Law School have warned of the legal implications refusing to pay energy bills may have on those who are already struggling to pay.

They said: “The past year has been extremely difficult for households across the UK, as bills have continued to rise amid the cost of living crisis. However, refusing to pay your bills can have seriously damaging consequences for individuals who become involved in the boycott.

“Not only can having a debt against your name be stressful, as individuals will more than likely be liable to pay the money back, but it can also potentially withhold you from being able to buy or rent a house in the future - or even get a new energy contract.

“Refusing to pay energy bills may seem like a tempting idea for individuals that are struggling, but unfortunately they do not have the legal right to withhold payments to their energy suppliers, unless the terms of the contract that were originally agreed upon are breached by the company themselves.

“Most individuals will also find that there will be a clause in their contract that entitles energy suppliers to increase energy rates and prices as retail prices increase also, unless you are on a fixed rate tariff.

“By law, a customer who has received and used a service from an energy supplier is required to pay for that service. Withholding payments to a business will be seen as a breach of contract and the company will be well within their legal rights to take action with regard to the debt.

“It is therefore important that in the coming months, customers review their contract with their energy supplier so that they understand what rights they and their energy suppliers have if payments are withheld and not paid.

“Though protests of this kind may appear to be a solution for those who are struggling, the legal consequences of refusing to pay energy bills impose more serious risks that could see some individuals credit ratings being affected, or even their energy supply being cut off as we head into winter, which can carry its own health risks.”

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