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What to do if you can’t pay your utility bills
Written by Caitlin Ritchie
Edited by Hannah Hillson
Last updated 08/01/2023
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Key Points
- Residential energy and natural gas prices have trended upward since 2021 and have continued to increase in 2023.
- Studies show that 5.2 million households in the U.S. struggle to pay their energy bills.
- If meeting your electricity bills has proven difficult, you can reach out to your energy provider for different payment options, take advantage of bill assistance programs, or find ways to lower your energy usage.
Electricity rates have risen across the nation. Based on data from the Energy Information Administration (EIA), residential energy prices increased 10% from 2021 to 2022. Moreover, rates have continued to rise into 2023, with the average residential electricity rate in May 2023 approximately 8% higher than May 2022. Natural gas prices have been volatile, too. The EIA reports a 22% increase in residential natural gas rates from 2021 to 2022.
Higher energy rates mean residents are paying more in electricity bills. Many households in the U.S. struggle to pay for basic utilities like electricity. In fact, a 2022 study published in Nature Communicationsfound approximately 5.2 million U.S. households above the Federal Poverty Line experience energy poverty. A 2020 report in Nature Energy defined energy poverty as “the inability of a household to meet their energy needs.”
COVID-19 only worsened energy burden for many households. In 2022, 26% of Americans were unable to pay their electricity bills in full at least once, while 16% kept the temperature in their homes at an unsafe or unhealthy level in order to afford their electricity bills.
Energy prices are volatile and affect millions of Americans every year. If you are struggling to pay your electricity bills, there are steps you can take to keep the lights on despite rising energy rates.
Contact your energy provider
The first step is to contact your energy provider. If you live in a deregulated state, like Texas, you may receive your bill from a retail electricity provider (REP). For residents in regulated areas, you might receive your bills from your local utility company. Either way, you should contact the company that charges you for electricity.
Many energy providers offer assistance for residents who know they won’t be able to pay their bills. For example, Texas REP TXU Energy provides these payment options:
- Payment extension: You receive a longer window of time to pay your current bill.
- Deferred payment plan: You receive assistance to pay off your balance in monthly payments.
- Waived or split deposit: If you qualify, you can split your deposit into two payments or don’t have to pay a deposit.
- Waived late fees: Residents enrolled in the supplemental nutrition assistance program (SNAP) or Medicaid qualify for waived late fees.
It’s important that you contact your energy provider as soon as possible to discuss payment options before your bill is due or your service is disconnected because disconnection can impact your eligibility for aid. The Public Utilities Commission of Texas explains, “You are eligible for a deferred payment plan if you have not received more than two termination notices in the past year.”
Depending on your household income, you may qualify for additional assistance through your provider. Through Texas Senate Bill 1976, households enrolled in SNAP or Medicaid can qualify for bill pay assistance but need to contact their provider to enroll. There may also be bill pay programs in your area through non-profit organizations.
Bill pay assistance programs by state
If you are struggling to pay your electricity bills, you may qualify for bill pay assistance in your area. The fastest way to learn about your options is to contact your electric provider directly. You can also check your Public Utilities Commission (PUC) website or search for local non-profits that offer bill assistance.
Following are examples of bill pay assistance resources in a few states.
| State | Resource | Description |
|---|---|---|
| Connecticut | Connecticut Energy Assistance Program (CEAP) | Qualifying households can apply for bill assistance, energy crisis assistance, and weatherization or energy-related home repairs. |
| Georgia | Georgia Energy Assistance Program | This program helps qualifying households pay their home energy bills. |
| Illinois | Low-Income Home Energy Assistance Program (LIHEAP) | This program helps low-income households pay for energy services. LIHEAP focuses on coverage for heating in the winter. |
| Massachusetts | Energy Assistance Programs | Massachusetts residents can qualify for various energy assistance options, including a discount on electric bills. |
| New Hampshire | Electric Assistance Program (EAP) | EAP offers income-eligible households a discount on their electricity bills. |
| New York | Home Energy Assistance Program (HEAP) | HEAP helps low-income households (including renters) pay for electric and heating bills. |
| Ohio | Home Energy Assistance Program (HEAP) | This program helps low-income Ohio households cover heating costs during the winter. |
| Pennsylvania | Low-Income Home Energy Assistance Program (LIHEAP) | This program provides one-time grants for low-income households to help cover their energy bills. |
| Texas | 211 Texas | Search for electricity bill assistance in this database for a list of Texas assistance programs. |
How to lower future electricity bills
Whether you qualify for bill pay assistance or simply want to save money, cutting your energy usage is the simplest way to lower your electricity bills. Your energy provider charges you based on the amount of electricity you use each month. The less electricity you consume, the lower your energy bill.
There are several easy ways to use less electricity, including bumping your thermostat up or down (depending on the season), lowering your water heater temperature, and using “power saving” settings on electronics.
If you live in a deregulated state, you may be able to save money by switching to an energy plan with a lower rate or terms that work better for your usage. Lower rates don’t always mean cheaper bills, but finding a plan that charges you less for your usage level could lead to savings. Be sure to read the Electricity Facts Label (EFL) before signing up for a plan. The EFL contains information about the rates charged for different usage levels, contract length, additional fees, and other important details.