Urgent warning for families as little-known fee could see you slapped with extra charge
HARD-UP households are being warned they could face a penalty charge if they make a common mistake.
An additional fee could be imposed on any household that doesn't pay their energy bill on time.
Some suppliers are now charging up to £25 to billpayers who miss a payment.
It comes as the cost of gas and electricity continues to soar amid the cost of living crisis.
ScottishPower introduced the extra fee earlier this year - with customers being charged up to £20 if their bill goes unpaid after 28 days.
A number of other big energy firms also charge customers who miss a payment.
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EDF Energy's fee is £10 for customers with an overdue balance of £50 or more that remains unpaid 28 days after the billing date.
But the firm said financially vulnerable customers, and people with certain mental and physical disabilities, are exempt from late payments.
E.ON Energy also charges £10 for a late payment.
Energy giant British Gas charges customers £13 if their payment isn't made within 28 days of the bill.
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If the bill remains unpaid after 36 days, customers will be charged an extra £7 too.
Outfox the Market said it charges £25 for any missed or late payments.
Octopus, Bulb and M&S Energy all state in their terms and conditions that they charge £15 for the first missed payment, and £20 for each missed payment after that.
But a spokesman for Octopus said the company has never charged customers fees or interest if they don't pay on time.
Octopus said: "Instead of charging customers, we employ a number of different ways to engage and help customers who miss payments, and work with them to put together payment plans or payment holidays that allow them to pay their bills on their terms."
Good Energy charges customers 3% interest on bills that aren't paid after 28 days, according to its terms and conditions.
Which energy firms don't charge late fees?
A number of energy providers don't have any formal charges for customers who make late payments.
Shell Energy doesn't charge customers who go into arrears due to a missed payment.
But if you pay your bill by direct debit and cancel the payment, you will be charged a £5 administration fee.
Utilita Energy also doesn't charge late payment fees.
So Energy said it "rarely imposes" its £20 missed payment fee and has not applied it since the start of the cost of living crisis.
A spokesman for the energy firm said: "So Energy always seeks to engage with the customer to help them manage their payments before we apply any charges."
Energy regulator Ofgem said suppliers "must take into account a customer's circumstances and ability to pay" and that it will approach suppliers not doing this.
An Ofgem spokesman said: “Any charges for late payment of bills should be clearly stipulated and explained by suppliers in their contracts with customers.
"Contracts can be changed by suppliers but they must give sufficient notice and a proper explanation.
"Any communication in regard to unpaid or late bills should be reasonably and fairly worded."
Consumer expert Martyn James said it is "unacceptable" for energy firms to be charging late payment fees.
He said: "I'd like to see all energy businesses commit to not charging these fees, passing on debts to collectors or cutting people off for at least a year while the energy crisis continues."
How to avoid late payment fees
If you are struggling to afford your gas and electricity bills, you should contact your supplier to discuss ways to pay what you owe them.
If you know you're going to miss a payment, let your supplier know and ask if they can waive the fee.
says that your supplier should help you come to a solution and help you to work out a deal that works for both of you.
Debt expert Andy Shaw from charity Stepchange previously told The Sun that speaking to them could mean you get the right support.
"All energy companies have an obligation to deal fairly with customers who are in financial difficulty or vulnerable for any other reason, for example health or age," he said.
The exact help your supplier can offer will depend on your circumstances, and can range from grants and vouchers to repayment plans (see more below).
Here's all the ways you could get help from your supplier - from prepayment vouchers to cash grants.
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If you're worried about paying bills, falling behind or are in debt, there are plenty of organisations where you can seek advice for free, including:
- - 0808 808 4000
- - 0800 138 1111
- - 0808 800 9060