Payment arrears
Financial problems are rarely talked about, and to the outside world they often only become clear when it is already too late. By the time people ask for help, there are on average 14 creditors and the pile of debt has already grown to 40.000 euros. Moreover, there are often not only financial problems: the relationship, mental health or social situation have often already taken heavy blows as well. That is why early detection and intervention are very important. The new Landelijke Convenant Vroegsignalering puts an explicit focus on this.
01Discussing the situation
First and foremost, always contact the energy supplier. Start the conversation and explain the problem. You do not have to disclose every detail, and of course some problems are private, but it is important to be sufficiently clear and honest. Every energy supplier applies different rules and conditions for payment arrears. Ask about these conditions so that the right choices are made.
02Try to pay in part
If it is really not possible to pay everything, it can sometimes be advisable to see whether a partial payment is still an option. Energy suppliers are often only willing to agree payment plans within certain limits. By making sure the debt stays within these limits, a payment plan may suddenly become an option after all. In addition, the energy supplier will then also see that there is goodwill.
03Agreeing a payment plan
If it is (subsequently) possible to agree a payment plan, it is advisable to actually agree such a plan. This prevents disconnection. Do bear in mind that it is important to stick to such a payment plan closely. If even a single instalment is missed, the payment plan often goes straight into the bin. So make sure the payment plan is also realistic.
04Getting help
If things threaten to become very difficult, or if the energy supplier is not willing to agree a payment plan, which incidentally is not an obligation, it is advisable to get help. Municipalities are increasingly involved in debt counselling. They can, for example, mediate with the energy supplier, and they can also coach and guide people to prevent similar problems in the future. The municipality will often get in touch proactively.
05Presenting proof to the energy supplier
If you have been registered with a debt counsellor through the municipality, it is important to pass this on to the energy supplier. They must then decide whether or not they are going to help. In any case, they may not cut off the energy before they have made a final decision. Furthermore, it is important to stick properly to the agreements made with the debt counsellor. Anyone who does not keep to the agreements may still end up without energy.
06I cannot pay my energy bill (on time). What should I do?
If it is not possible to pay the costs of the energy contract (on time), it is above all important not to sit still and to get in touch with the energy supplier straight away. Agreeing a payment plan is always preferred. If that does not work, debt mediation is the next step. In any case, keep the lines of communication open, because otherwise disconnection may very well follow.
07The new Landelijke Convenant Vroegsignalering
The new Landelijke Convenant Vroegsignalering is intended to guarantee that payment problems are noticed before it is too late and the damage can no longer be limited. Although municipalities will play a proactive role in this, it remains the consumer's responsibility to contribute to a solution. Consumers will also have to be willing to cooperate themselves, but in any case the municipality will assist them and energy suppliers will give them some time to work on a solution.
About the new Landelijke Convenant Vroegsignalering
The new covenant provides for a special collaboration between municipalities and various fixed-costs partners. In the meantime, more than 160 municipalities have already signed the covenant. Besides energy companies, drinking water companies, health insurers and the umbrella organisation of landlords, among others, have also done so. So not all fixed-costs partners take part in the covenant, but there are already quite a few by now.
The covenant takes effect on 1 January 2021 and focuses on improved collaboration and uniform implementation agreements regarding early detection. The main goal is to prevent escalations such as evictions or energy disconnections by avoiding payment arrears building up unnecessarily.
Early detection of arrears
In practice, municipalities will receive signals that point to a potential need for debt counselling. These are, for example, arrears with the energy supplier, but also arrears on drinking water bills, the rent bill and so on. The affiliated companies pass this on to the municipality.
The covenant does not include fixed moments at which the fixed-costs partners must pass on these signals. In principle they will follow from 30 days after the reminder. Most partners pass on the signals between the 20th and the 25th day of the month.
Offer of help from the municipality
When the municipality receives such a signal about payment arrears, it can organise a home visit. Such a home visit is not mandatory, however. The municipality must at least take action and make an offer of debt counselling. The municipality is free to decide how it organises this. It can be done with a phone call, for example, but also with a formal letter.
The person potentially in need of debt counselling is not obliged to accept the municipality's offer. However, the collection measures for the reported bills are paused for at least 30 days if the help is accepted. For outstanding bills that have not yet been overdue long enough, the collection measures do continue. It is therefore important that the customer simply keeps paying new energy bills, while a solution is sought for the old bills.
Help in different areas
In addition to the so-called quick fix, the fast help to resolve the financial problem, municipalities have all kinds of other instruments to support people with financial problems. This also makes it possible to tackle the cause of the problem. These include, for example, budget coaching, checking for income-boosting measures, addiction care and so on. This help is offered on a voluntary basis.
08Other solutions to prevent or tackle payment arrears
It is also possible to do a few things yourself to tackle the financial problems. The focus here is very much on lowering fixed costs. This includes, for example, comparison sites for health care, telephony and energy to save easily, but also practical tips that help save energy. Sometimes the advance payment is simply too high, and it is good to ask for a reduction of the monthly amount.
In addition, it is important to act quickly yourself. If there are payment problems, it is above all important to contact fixed-costs companies in good time. Many mortgage lenders, for example, have their own support team that helps think about practical solutions. Above all, remember that there is nothing wrong with asking for help.
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09The energy supplier's rights when payment is not made: can energy be cut off?
An energy supplier cannot simply cut off the energy, but must first send at least one reminder. In it, the energy supplier refers to debt counselling options. Energy suppliers often do more and will make several attempts to still obtain payment. They can also contribute to solutions and payment plans, but this is not mandatory. Nor are they obliged to sign the Landelijk Convenant Vroegsignalering, but they must of course respect agreements they have made.
If there is no response to this reminder and no payment follows, the energy supplier will send a letter stating that it is stopping the supply. The grid operator is also informed of this. This letter states when the disconnection will take place. After receiving this letter, a period of ten days begins within which the disconnection can still be prevented, for example by paying or by agreeing a payment plan.
There are, however, a number of exceptions to the above rules, which are included in the Regeling afsluitbeleid voor kleinverbruikers van elektriciteit en gas. For example, in principle no disconnection may be carried out in the winter period, except in specific cases such as fraud or misuse.
After the disconnection, the energy supplier can still enforce its rights. This means that it can call in a debt collection agency for the amounts owed. The costs will then keep rising. Even after a disconnection, it remains important to look for solutions.
10What happens if I cannot pay?
If it is not possible to pay, a debt collection process is started. Through this process the energy supplier still wants to obtain payment. In addition, disconnection may also follow, but for that the energy supplier must comply with legal rules. Even after such a disconnection, the energy supplier can claim payments.
Debt collection process
First and foremost, the energy supplier will want to see a payment. That is why a debt collection process is started. At least one payment reminder is sent, but in practice there are often two or more. From the second reminder onwards, collection costs are often charged. There are both minimums and maximums for these collection costs. The collection costs depend on the outstanding amount. Many energy suppliers stay close to the maximums.
The reminder phase is followed by the formal demand. In principle this is the last chance to pay the full amount, but some energy suppliers also send a final demand afterwards. Every energy supplier simply has its own way of working.
After the many reminders, the claim usually goes to a debt collection agency. Of course a payment plan can still be agreed along the way, whether or not after the municipality has intervened.
My energy is about to be cut off
In the case of large payment arrears that are not resolved, but also in the case of fraud or misuse, the energy supplier can proceed to disconnection. In principle it is not the energy supplier that does this, but the grid operator. The energy supplier will, however, warn in advance that the supply is about to end. This is the last moment to prevent a disconnection. If there is no response and no payment follows, disconnection will actually go ahead.
Preventing a disconnection
The simplest way to prevent a disconnection is to pay bills on time. If that does not work, the energy supplier must always be contacted. The energy supplier will often be willing to cooperate on a solution. If necessary, seek outside help with payment problems and ask the municipality, friends or family for help. In addition, it is important to prevent fraud or misuse. If energy is tapped illegally, even when this is done by a tenant, disconnection and a report to the police will inevitably follow.
Finally, there are also situations in which the energy supplier may not proceed to disconnection. This is the case, for example, if a disconnection would have very serious consequences for the health of the customer or their housemates. For this, a doctor's statement must be presented that may not come from the treating doctor. The energy may also not be cut off during severe frost; for that, the KNMI must have measured an average temperature below 0 °C on two consecutive days in the period between 1 October and 1 April. People should not forget to invoke such exceptions where applicable. The last exception is in principle applied automatically, but a doctor's certificate must always be presented by the person themselves.
My energy or water has been cut off
Consult the general terms and conditions of the energy supplier or the drinking water company and check under which conditions it may still be possible to be reconnected. In addition, you should register for debt counselling. That way, during the winter period at least, a reconnection to energy will follow after all. If there is debt counselling and the overdue bills have been included in it, reconnection is possible again. Furthermore, it always remains possible to present a medical statement, even if the disconnection has already taken place. The grid operator or the drinking water company must then provide a reconnection, even if not a single cent has been paid in the meantime. Do bear in mind that costs may be charged again for the connection.
Is the disconnection unjustified, for example because no payment reminder was received or the energy supplier did nothing with the medical statement presented to it? Then first of all contact the energy supplier so that it can still meet its obligations. If necessary, send a registered letter with a formal demand to provide a reconnection within a period of two weeks. If there is still no solution after that, it is possible to go to the Geschillencommissie Water or the Geschillencommissie Energie.
Reconnection of energy
In a number of cases a disconnection ban applies. These cases have already been discussed above. If the stated conditions are met, a reconnection must take place. In summary, a reconnection must be carried out in the following cases:
It is winter and the debtor has shown that they have requested debt counselling. Reconnection is mandatory until the application for debt counselling is rejected or ends
It is winter and the energy supplier's claim has been included in the ongoing debt counselling process
It concerns a vulnerable consumer and a doctor's statement is presented. This applies not only during the winter, but all year round.
Do bear in mind that in some cases disconnection can always go ahead, even during the winter:
The fixed-term supply agreement expires
The connection is unsafe, for example because of a gas leak
There is fraud or misuse
The consumer has a prepaid meter and no further payments are made
The consumer no longer has an energy supplier
The consumer asks to be disconnected
Can I switch energy supplier despite payment problems?
Is a disconnection coming despite everything because the previous energy supplier is terminating the contract? Then it is possible to quickly submit an urgent request to the new energy supplier. Switching is also possible when there are only payment problems. Energy suppliers will then almost always impose strict conditions, such as the obligation to pay a deposit. With payment problems this is not always realistic, but it can be an interesting route. This is all the more the case if it can lead to a saving.
11Frequently asked questions about payment arrears
Payment problems are never pleasant. They often go hand in hand with emotional problems and difficulties in the family. Precisely in such a case, people need clarity and not uncertainty. We cannot take away all problems, and people simply bear responsibility for that themselves. We do, however, give a straight answer and answer a number of frequently asked questions
Yes, but with the necessary ifs and buts. In the winter period, which legally runs from 1 October to 1 April, it is permitted to be disconnected from energy or water. But not when you are registered for debt counselling or are receiving debt counselling and the debt has been included in it. There are in turn exceptions to that for situations such as fraud or misuse. In the case of a gas leak the energy may also be cut off, even if the bills have all been paid properly. Finally, disconnection may never go ahead if there are medical objections.
Can I be disconnected from energy or water in winter?
No, the energy may never simply be cut off. There must always be a good reason for it. Examples are non-payment or a gas leak. The grid operator may not just cut off energy at random and must take all kinds of legal rules into account.
Can the energy simply be cut off?
Always talk to the energy supplier and explain the problem clearly. Check whether a solution can be found. If the energy supplier does not take action, it is important to send them a registered letter and ask them to still adjust the meter readings. If the energy supplier still refuses to cooperate on a solution, the matter can be submitted to the Geschillencommissie Energie.
I have a problem with my bill, what can I do?
This deposit is not lost and you get it back later, usually after the first contract year. The deposit only serves to guarantee that you will meet your obligations. If that is not the case, the deposit can of course be used to settle the amounts owed.
What happens if the new energy supplier asks me for a deposit?
Possibly. A payment plan can be agreed freely, and the energy supplier can therefore impose conditions. It is not unusual for the energy supplier to ask for a direct debit. If the bills were already paid by direct debit, nothing changes, of course.
Will my payment method change if I agree a payment plan?
It will not come to that so quickly. Usually there is simply a second attempt, and otherwise a reminder. It is always possible to simply pay anyway. Do make sure that the second direct debit attempt succeeds.
A direct debit has failed. Will the energy now be cut off?
Payment arrears? Prevent (unjustified) disconnection of energy
Energy payment arrears do not have to end dramatically. There is often a solution. ➜ See your options on this page.
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