Moving can be a chaotic time. It’s easy to forget some things when you’re moving out of your old place because there are so many things going on. It’s important to pay your last electric bill before you move, among other things. If you don’t pay your last electric bill, bad things can happen. You might forget about it while you’re moving.
As an electric customer, you are responsible for paying any outstanding charges on your account prior to closing it out When moving, failing to pay your final bill often stems from underestimating your remaining balance Your closing bill may end up higher than expected due to increased energy use packing, cleaning, or other move-out activities. Being caught off guard by the amount can lead some folks to just ignore the bill. However, this opens you up to various penalties from the electric company, some of which can follow you even after you move.
Credit Impacts
One major consequence of not paying your electric bill before moving is the hit your credit will take. Just like any other debt or bill, unpaid electric accounts get reported to credit bureaus. This damages your credit score by adding a delinquent account to your report. Electric companies report past due customers after only 30 days of nonpayment in some cases.
A negative item like an unpaid electric bill can hurt your credit health for years to come As you apply for loans, apartments, and other services in the future, that delinquent account on your report could hinder your applications or cause you to pay higher interest rates Maintaining good credit is essential, so skipping out on a final electric bill can be extremely detrimental over time.
Loss of Service
In addition to credit damage, your old electric provider can refuse to provide you service in the future if you previously failed to pay. Most electric companies have policies that prohibit reconnecting customers who left outstanding balances in the past. This could prevent you from getting utilities hooked up when you move into your new place.
Having an unpaid electric bill attached to your name and address essentially blacklists you from that provider. Unless you pay off the debt, you likely won’t be able to open another account with them in the future. This can majorly limit your electric service options when looking for housing.
Fees & Collections
If you don’t pay your electric bill once you move, the company will start tacking on late fees, disconnection fees, and collection fees. Late fees are typically added after the due date passes without payment. Disconnection fees apply when they send a technician to officially disconnect service at the property. If the account gets sent to collections, additional collection fees get added.
These different fees can quickly make a bill that is past due for a couple hundred dollars go up to several hundred dollars. Paying your bill late comes with financial penalties that amplify the amount owed. If you let an electric account go to collections, debt collectors will keep calling and writing to you to demand payment. It’s a major headache.
Services Stay In Your Name
When you don’t close out your electric account by paying the final bill, the services stay in your name even after you move. This means any ongoing usage, fees, or issues at that address continue to accumulate on your account. If the new tenant runs up the electricity bill, it’s still tied to you.
The only way to fully sever your financial responsibility is by closing your account through paying the final bill. If you leave the account open, you are vulnerable to being charged for usage that is no longer yours. Make sure to close it out properly.
Utility Shutoff
If you leave the electric bill unpaid when you move, the provider can eventually shut off service at that address. This leaves the next tenant or landlord without electricity. The property could be left with electric lines that are unable to be turned back on due to your unpaid bill attached to that meter.
Getting utilities reconnected will likely require whoever moves in next to pay off your outstanding balance first. This can create major headaches for landlords renting out their property or new tenants trying to move in. Never leave an unpaid utility bill behind.
Can Be Sent to Collections
After all internal collection efforts by the electric company fail, they can engage a collections agency to take over recovering the unpaid debt. These agencies then use aggressive tactics like harassing calls and threats of legal action. Having an account go to collections is devastating for your credit score and peace of mind.
Collections agencies report unpaid debts to all major credit bureaus. They can also file lawsuits or attempt to garnish wages if you refuse to make payment arrangements. Don’t let an unpaid electric bill spiral out of control into collections.
Tips for Paying Your Final Electric Bill
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Contact the electric company as soon as you have a move-out date to close your account. Provide them with your new address.
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Ask for a final meter read on your move-out date to get an accurate final bill.
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Carefully review your closing bill to ensure you aren’t being overcharged for unused days.
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Pay the full final balance promptly to avoid late fees.
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Keep records showing you zeroed out the account in case any issues arise.
Failing to pay your last electric bill before moving ends up causing a nightmare scenario. Save yourself the endless frustrations by being proactive. Close your electric account properly and pay the final charges on time. Leaving loose ends with a utility provider can come back to bite you through credit impacts, inability to get service, fees, collections calls, and other major headaches. Don’t move out until the electric bill is fully paid!
HOW LONG UNTIL MY UTILITY COMPANY SHUTS OFF MY ELECTRIC SERVICE?
Before an electricity provider can disconnect a customer’s utility service, the Public Utility Commission of Texas rules requires the REP to mail a written disconnection notice no earlier than the first day after the bill’s due date. Additionally, the disconnection date must occur following a required 10-day period from the date the notice was issued and it may not fall on a holiday or weekend unless the REP is available to take payments, make payment arrangements, and service can be reconnected on those days. This notice must provide details on the following:
-Why a utility customer’s service is being shut off, how they can avoid disconnection, the charges that will be incurred for both disconnection and reconnection, and the total balance that is overdue.
-How the customer’s deposit will be applied to your overdue changes.
-How the customer can make payment arrangements for your overdue bill.
-Government relief program(s) that assist low-income customers.
-How the provider will go about collecting customer’s unpaid charges if they don’t pay the overdue bill or the deferred payment arrangement before the electricity shut off date.
UNDERSTANDING ELECTRICITY SHUT OFF LAWS IN TEXAS
As a customer, are you aware of the rights you have under your utility service contract? The Public Utility Commission of Texas (PUCT) is responsible for protecting electricity customers and ensuring that they have fair treatment from retail electricity providers (REPs). In compliance with the Public Utility Commission of Texas, your retail electric provider is required to adhere to the following:
-Give the utility customer at least 10 days’ notice before sending a disconnection notice.
-Allow the customer to make a payment arrangement if they are qualified or offer a deferred payment plan during summer or winter weather moratoriums.
-Following an electrical disconnection notice, provide information on energy assistance provider organizations that can help pay the energy customer’s overdue energy bill.
Learn more about when your Texas utility company does and does not have the right to service disconnection, and how to get electric service reconnected below.
What Happens If I Don’t Pay My Electric Bill? (Worst Case Scenario)
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