Still can't afford to pay my electric bills - any options?

Bloodheart

I'm unemployed and have been for two years, I'm getting JSA, housing and tax benefits.

I'm with Npower for my electricity, cannot move to another company and cannot get a pre-payment meter installed.

Backstory;
I had an electricity bill of £500 I couldn't pay, I had been on a £15 per fortnight payment plan, but they raised this to £75 per fortnight to cover this bill. I couldn't afford to pay that much so I ended up getting a debt relief order to put debts on hold - this was the beginning of March (most of my other debts weren't a problem, it was just to deal with Npower).

Currently;
I had a letter through the door last week for an overdue electricity bill - I get my bills quarterly, so this was electricity from a few months prior to the debt relief order - the bill was for around £200.

I cannot afford to pay so I contacted Npower for help, they have put me back onto a payment plan, but this is £33 per fortnight, still too much. I'm basically right back into the same situation again, and I'm going to end up right back in the same situation and end up with my electricity cut off!

Is there anything else I can do to make things easier?
Any benefits I don't know about?
Anything I can do to get away from Npower?

There has to be something - surely it can't be a choice between either not eating or getting your electricity cut off???!!

kjsmith7

You may wish to consider Fuel Direct. You can only arrange it if you are overdue or behind on payments, so your payment plan would have to be cancelled. It's arranged through DWP/Jobcentre, and they take a small amount (much less than you actually use) from your benefits before you receive them. You'd have to phone the Jobcentre to talk to them about it, and they arrange it with your supplier for you. When you get a job, you will then have a higher payment amount as you're still being charged for what you use now, but just not paying for it at the moment. It's a short term solution, but might be useful for you in your situation. Hope that helps

Bloodheart

I've heard of this before - but the thing is I wonder why CAB didn't suggest this rather than a debt recovery order given how that effects my credit and that it cost to put it in place. I'll see if the job centre can arrange it next time I go in - fortnights time now - thank you.

macman

Paying your bills quarterly makes it harder to budget and pushes up your costs, because you are excluded from all the cheapest tariffs. Switch to monthly DD and that will even out your outgoings month to month.

mattcanary

I advise against paying by DD if you are on benefits - it makes it difficult to budget. Your benefits get paid fortnightly and DD payment goes out of bank account on same date every month. OK, you could open another bank account I suppose, and transfer enough benefit money into new bank account to cover DD payments. Otherwise, I wouldn;t recommend it. Particularly, as NPOwer would have the ultimate say on how much the DD payment should be for. On a tight income, that is not ideal at all.

Having said that, I agree that paying quarterly is not good either. I definitely think DWP payments are the better option. Failing that, how about a payment card where you can pay a regular amount (weekly or fortnightly) into Paypoint outlets. You can easily calculate how much electric has been used each week/fortnight and only pay that amount, if you wish too.

mattcanary

EDIT: not sure how often tax credits are paid. JSA is certainly paid fortnightly though.
And shouldn't bring housing money into the equation (i's paid four-weekly anyway) because that money is for the rent, not bills.

Bloodheart

DD is not an option - fortnightly payments of JSA means money may not always be there, and failed DD's cost money...that's £90 for one failed DD, I had that problem when I first lost my job, which meant no money for food, rent, etc. and having to close my bank account to cut-off the debts that resulted from bank charges.

I also currently have a payment card to pay a regular amount fortnightly via paypoint outlets - that's the problem!

stewie_griffin

kjsmith7 wrote: »

they take a small amount (much less than you actually use) from your benefits before you receive them.

Taken from http://www.direct.gov.uk/en/moneytaxandbenefits/managingdebt/debtsandarrears/dg_10025592

Fuel Direct

If you've got unpaid bills from a fuel or water supplier, and you receive Income Support, Pension Credit, Employment and Support Allowance or income-based Jobseeker's Allowance, you can ask your benefits office to pay the supplier directly out of your benefit. This system is called Fuel Direct. It covers your current fuel use and also pays off a certain amount of your unpaid bill each week.

If you use Fuel Direct, check your meter reading and tell your benefit office - this will help make sure your supplier's got it right.

markharding557

I would advise prepayment that way if you can not afford then you do without
On this method they will only take a small amount weekly towards your debt and it will be a lot more difficult to run more up because you pay as you use.
They will probably force you on to this eventually anyway

kjsmith7

stewie_griffin wrote: »

Taken from http://www.direct.gov.uk/en/moneytaxandbenefits/managingdebt/debtsandarrears/dg_10025592

Fuel Direct

If you've got unpaid bills from a fuel or water supplier, and you receive Income Support, Pension Credit, Employment and Support Allowance or income-based Jobseeker's Allowance, you can ask your benefits office to pay the supplier directly out of your benefit. This system is called Fuel Direct. It covers your current fuel use and also pays off a certain amount of your unpaid bill each week.

If you use Fuel Direct, check your meter reading and tell your benefit office - this will help make sure your supplier's got it right.

It really doesn't. A few people I know on Fuel Direct paid a lot less than they are using - and then it catches up when they then find employment.

spiro

markharding557 wrote: »

I would advise prepayment that way if you can not afford then you do without
On this method they will only take a small amount weekly towards your debt and it will be a lot more difficult to run more up because you pay as you use.
They will probably force you on to this eventually anyway

I have to agree with this. If you have a PPM installed the supplier can only set the weekly debt recovery rate and a rate that you can afford based on your income and outgoings. You will also not build up any future debt. The tariff to PPM is now on a par with most suppliers standard credit tariff (i.e. no dd discounts etc) but at least you are no longer paying more.