Once utility service has been established, it is important to take steps to make bills as affordable as possible so that service can be maintained throughout the year. The following steps are designed to help customers avoid payment difficulty.
Strategies for managing bills
There are some steps that customers can take to even out or lower their monthly utility bills. The three following strategies are most helpful when bills are within range of being affordable, or if the customer's income fluctuates seasonally. Energy efficiency is a strategy that will benefit all customers, as increased energy efficiency in the home should result in lower consumption of gas and electric.
Payment Period (timing of the bill)
Residential customers must have at least twenty (20) calendar days from when the utility company sends out the monthly bill to pay the bill in full. There is a period of at least an additional fifteen (15) calendar days before the utility can disconnect service. If a customer’s utility bill comes due before a regular payday they can call the company and ask to change the payment due date until after they get paid. (Reference NMAC 17.5.410.13A)
Budget Billing
For customers with monthly income that is steady and predicable month after month utility payment problems may happen when temperatures are extreme in the coldest winter months and the hottest summer months. In this case, customers may want to get on the utility company’s budget billing program which takes the spikes out of bills by charging the same amount each month throughout the year. The monthly amount is based on actual usage from the prior year. At the end of the year the utility company will compare the estimated usage and actual usage and either bill for or credit the difference. (Reference NMAC 17.5.410.11)
Installment Payment Plans
If a residential customer informs the utility company of an inability pay the customer should be offered an installment payment plan unless the customer has a history of payment difficulty. (Reference NMAC 17.5.410.31D) An installment plan can be especially helpful in situations where a customer had an unexpected emergency that caused a temporary financial shortfall. If a customer falls behind on her/his utility bill and can’t pay the bill off in full, they should call the utility company and explain that they are unable to pay the current charges in full. Before calling, it’s helpful for the customer to evaluate what monthly amount she/he could pay and then negotiate with the utility company to reach a payment plan that is reasonable and doable.
It may be helpful to remember that a utility company wants to get paid as quickly as possible so the customer service representative may try to get a customer to accept a plan that is not realistic (i.e, only thirty days long). Customers should try to remember that that the company is better off if it gets regular payments from customers than if the account gets sent to a collection agency. Also the first line of customer service representatives may not have the authority to agree to longer payment agreements. If this happens, a customer should ask to speak with a supervisor or manager. The manager should be reminded that the customer wants to pay the bill and wants to negotiate a plan that is doable and reasonable. This is an opportunity also to negotiate for a freeze on any late payments and no interest charged against the outstanding balance.
At this point if the company won’t work out something that is workable, the customer may want to file a complaint or request help from the PRC consumer division or his/her commissioner.
Customers are protected from service disconnection while negotiating a payment plan with the utility.
If a customer falls behind on the payment plan the utility has the right to discontinue service so the customer should call the company and try to renegotiate. The company has to go through a disconnection process that gives the customer time to work out a new agreement and/or try to obtain emergency financial assistance.
Dealing with Late Charges
Ironically, once customers fall behind on home energy bills the utility company may assess a late fee that makes bills more unaffordable. Customers can try to negotiate with the company to drop late fees or try to have them included in a payment plan. No late fee may be charged on a disputed amount.
Energy Conservation and Efficiency
One of the best strategies for making bills more affordable is to reduce home energy consumption. There are government, utility, and charitable programs that assist families with making their homes more efficient.
Bill Assistance
Despite making every attempt to manage bills and reduce energy consumption, bills remain unaffordable for many utility customers. High and increasing energy prices make this a reality. There are some federal, state and local funds available to assist families with unaffordable utility bills.
