Blogging for Change

How to Avoid a Utility Shutoff

by Jackie Lam on
6/26/2025
in Consumer Protection
Stressed out young woman reading utility bill.

When a financial setback hits, you may be able to adjust your expenses by cutting back on certain non-essential purchases. But what can you do about necessities like electricity and gas? 

Here are some steps to take if you're worried about a potential utility shutoff:

Prioritize necessities

When your budget is tight, you have to make hard choices. Those choices should be guided first and foremost by your basic needs: food, shelter, safety and security. 

In extreme situations, this may mean falling behind on things like credit card payments. It's not ideal, but it's better than having the lights go out or risking losing your home. And while the credit hit for missing debt payments can be tough, you can absolutely rebuild your credit and address your debts once your hardship is over, even if your accounts have gone to collections.

Contact the utility company

First, reach out to the utility company directly and let them know your situation. There are humans on the other end and if you can’t afford to make payments they might have some options to help keep the lights on.

Depending on the company, they might lower your payments, temporarily take you off the hook for upcoming payments, or drop late fees. Some companies may offer relief options, such as reduced payments, while others may be able to offer expanded billing options and payment options for those experiencing financial hardship. Do some poking around to see what your utility company offers.

If you were in good standing and paid your bills in a timely manner, there may be a better chance that they’ll be open to working with you on coming up with solutions.

Apply for a relief program

Depending on where you live and your situation, different forms of relief might be available. Along the same lines, relief programs and assistance agencies might be able to provide help should you need it. You can also try 211.org and FindHelp.org for a listing of local organizations and resources that can help meet your basic needs in a crisis. 

Besides letting you know what forms of financial relief are available, these assistance agencies can also help you stay informed of any changes at the national or local level that could impact your rights and protections.

See if average billing is an option

As we use more gas in our homes during the winter months and more electricity in the warmer months, we tend to see our bills spike in tandem. Many utility companies offer what’s known as budget billing or average billing, which looks at records of the total amount you paid in utilities over the course of a year. That number is then divided into 12 equal payments. The average that’s calculated will be what you pay each month (with changes to account for any significant fluctuations).

Average billing could come in handy in a number of ways. First, it bumps down the amount you paid during typically peak seasons. Next, it makes for easier planning. Instead of anticipating your utility bills to be $75 one month, $200 the next, paying the same each month means you can aim to set that money aside ahead of time, and won’t fall short with another bill. 

Reduce energy use

To save on energy, make it a habit to turn off lights and devices when you’re not in a room. You can also look into a smart plug, which you can schedule to turn and off at certain times, but could also track how much energy you're using. Just be sure to wait for a sale so you can scoop up the best deals on smart plugs.

Another tactic? Think up creative solutions to using energy. Adjust your schedule to maximize daylight and minimize electricity usage. Make sure your home is well insulated to minimize your heating and cost costs. Every little bit can help.

Lower your living expenses

Ok, so you’ve found ways to cut back on your energy use. To free up money to help afford to pay your utilities, expand your money-saving savvy to include overall living expenses. Nix subscriptions, find ways to save on groceries, cut back the costs of staying physically fit — let no expense go unexplored of its money-saving potential!

Not having enough to keep the lights on and the heater going during the cooler months is scary. But know there are resources at your disposal, and things you can do in your power to prevent it from happening.

If you need one-on-one help and more personalized advice, consider connecting with a debt and budget counselor to discuss your situation and discover potential solutions.

Tagged in Negotiating bills and fees, Managing a loss of income, Coronavirus

A corporate headshot of Jackie Lam.

Jackie Lam is an L.A.-based personal finance writer who is passionate about helping creatives with their finances. Her work has appeared in Forbes, Mental Floss, Business Insider, and Bankrate. She's also a 2022 Financial Learning and Empowerment in Communities (FLEC) award winner. You can find her at heyfreelancer.com.

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