Can the Electric Company Deny You Service?
Utility companies, such as electric companies, have the authority to deny service to applicants for various reasons. These reasons may include failure to pay a delinquent utility charge, failure to post a required deposit or guarantee, or owing money for the same type of service at the same or different address (Missouri Public Service Commission, 2019; Illinois Legal Aid Online, 2020).
Credit History and Utility Services
When determining whether to provide service, utility companies often consider an applicant’s credit history (Federal Trade Commission, 2021). A good credit history can make it easier to obtain services, while a poor credit history can make it more challenging. Moreover, how an individual pays their utility bills can become part of their credit history. Paying bills in full and on time can help improve credit, while failing to pay on time can have negative consequences, including collections and charge-offs (Federal Trade Commission, 2021).
Deposits and Letters of Guarantee
Utility companies may require new customers or existing customers with a poor payment history to pay a deposit or provide a letter of guarantee to obtain service (Missouri Public Service Commission, 2019). However, utility companies must treat all customers the same when it comes to requiring deposits or letters of guarantee. If their policy is to ask for a deposit or guarantee from new customers or those with poor credit history, it must apply to all customers in those categories (Missouri Public Service Commission, 2019).
Denial of Service
If an applicant is denied utility service, they have the right to know the specific reasons for the denial. The utility company must provide a notice within 30 days of the decision, and the applicant can request the reasons within 60 days (Illinois Legal Aid Online, 2020).
Difficulty Paying Utility Bills
If an applicant is having difficulty paying their utility bills, it is important to contact the utility company immediately. Payment arrangements and budget billing plans may be available to help manage overdue balances and avoid service disconnection (Federal Trade Commission, 2021).
Conclusion
Utility companies have the authority to deny service to applicants for various reasons, including failure to pay delinquent utility charges, failure to post a required deposit or guarantee, or owing money for the same type of service at the same or different address. Utility companies often consider an applicant’s credit history when determining whether to provide service, and how an individual pays their utility bills can become part of their credit history. If an applicant is denied utility service, they have the right to know the specific reasons for the denial. If an applicant is having difficulty paying their utility bills, it is important to contact the utility company immediately to explore available options.
References
Federal Trade Commission. (2021, May). Getting Utility Services: Why Your Credit Matters. Retrieved from https://consumer.ftc.gov/articles/getting-utility-services-why-your-credit-matters
Key Facts
- A utility company may deny service to an applicant for various reasons, including failure to pay a delinquent utility charge, failure to post a required deposit or guarantee, or owing money for the same type of service at the same or different address.
- Utility companies often consider an applicant’s credit history when determining whether to provide service. A good credit history can make it easier to get services, while a poor credit history can make it more challenging.
- How an individual pays their utility bills can become part of their credit history. Paying bills in full and on time can help improve credit, while failing to pay on time can have negative consequences, including collections and charge-offs.
- Utility companies may require new customers or existing customers with a poor payment history to pay a deposit or provide a letter of guarantee to obtain service.
- Utility companies must treat all customers the same when it comes to requiring deposits or letters of guarantee. If their policy is to ask for a deposit or guarantee from new customers or those with poor credit history, it must apply to all customers in those categories.
- If an applicant is denied utility service, they have the right to know the specific reasons for the denial. The utility company must provide a notice within 30 days of the decision, and the applicant can request the reasons within 60 days.
- If an applicant is having difficulty paying their utility bills, it is important to contact the utility company immediately. Payment arrangements and budget billing plans may be available to help manage overdue balances and avoid service disconnection.
Illinois Legal Aid Online. (2020, May 24). When a utility company may deny service. Retrieved from https://www.illinoislegalaid.org/legal-information/when-utility-company-may-deny-service
Missouri Public Service Commission. (2019). Denial of Service. Retrieved from https://psc.mo.gov/CMSInternetData/ConsumerInformation/Denial%20of%20Service.pdf
FAQs
Can an electric company deny me service for non-payment of a bill?
Yes, electric companies can deny service to applicants who have an unpaid delinquent utility charge for services provided by that utility or its regulated affiliate (Missouri Public Service Commission, 2019).
Can an electric company deny me service because of my credit history?
Electric companies often consider an applicant’s credit history when determining whether to provide service. A good credit history can make it easier to get services, while a poor credit history can make it more challenging (Federal Trade Commission, 2021).
Can an electric company require me to pay a deposit before starting service?
Yes, electric companies may require new customers or existing customers with a poor payment history to pay a deposit to obtain service (Missouri Public Service Commission, 2019).
What are my rights if I am denied electric service?
If you are denied electric service, you have the right to know the specific reasons for the denial. The electric company must provide a notice within 30 days of the decision, and you can request the reasons within 60 days (Illinois Legal Aid Online, 2020).
What should I do if I am having difficulty paying my electric bill?
If you are having difficulty paying your electric bill, it is important to contact the electric company immediately. Payment arrangements and budget billing plans may be available to help manage overdue balances and avoid service disconnection (Federal Trade Commission, 2021).
Can an electric company deny me service because of a previous occupant’s unpaid bill?
In some cases, an electric company may deny service if a previous occupant of the property has an unpaid bill. However, the electric company must show that:
- The applicant and the previous occupant lived at the same address during the time the service was provided
- The bill was incurred within the past seven years
- The electric company has attempted to collect the unpaid bill from the previous occupant
- At the time of the request for service, the bill remains unpaid and not in dispute (Missouri Public Service Commission, 2019)
Can an electric company deny me service for reasons unrelated to my service?
No, electric companies cannot deny service for reasons unrelated to the applicant’s service. For example, an electric company cannot deny service because of charges owing by another customer (unless the applicant was married to and living with the other customer at the time covered by the past-due bill), charges owing for non-utility service and merchandise, or charges owing to another utility company (Illinois Legal Aid Online, 2020).
What are some tips for avoiding electric service denial?
To avoid electric service denial, it is important to:
- Pay your electric bills on time and in full
- Maintain a good credit history
- Contact the electric company immediately if you are having difficulty paying your bill
- Be aware of your rights as a customer, including the right to know the reasons for any denial of service