Fuel and rent are two of the most important items in any household budget! Even if debt collection agencies are pressurising you: Paying for your electricity and gas is more important than paying off debts. Fuel debts are a danger to your existence because your supply could be cut off and your contract terminated! Make sure that fuel and rent are paid regularly in advance.
Set up a standing order with your bank or arrange for the Job Centre/Social Welfare Office to transfer the regular fuel instalments directly to the supplier’s account.
When can the supply be cut off?
If you are in arrears with payment, your fuel provider (EVU) cannot simply cut you off overnight. The following prerequisites must be fulfilled:
- Reminder: Your supplier must have sent you a payment reminder.
- The supplier must inform you about any available public assistance, advice services and prepayment plans.
- You must be given the chance to pay back the arrears in 6 to 18 monthly interest-free instalments or 12 to 24 monthly instalments if your arrears are over 300 euros.
- The supplier must also point out that cutting off the supply may cause disproportionate harm (see below).
- Threat of disconnection: The supplier must threaten you with disconnection. There is no set form for this and it is often done with the reminder.
- Respite period of 4 weeks: After receipt of the threat of disconnection, you must be granted a respite period of four weeks before you are cut off.
- Notification of the disconnection: You must be notified again at least 8 working days in advance that the supply is going to be cut off.
- If you can prove how you intend to pay the arrears, you cannot be disconnected.
- You must owe at least twice the monthly instalment and at least 100 euros.
How can I prevent the threatened disconnection?
Agree an extension of the payment period or payment in instalments! If you find that you cannot pay your monthly instalment or the outstanding balance of your annual bill on time, you should inform your supplier immediately. Explain the reasons for your temporary payment difficulties. Many suppliers will show understanding and allow you to pay your annual bill in instalments. However, the arrears from the previous year must be paid at the latest before the next annual statement is sent.
It may be possible to pay the amount in one lump sum when you get your holiday or Christmas bonus or a tax refund, for example.
Explain the hardship that would result if your fuel supply was cut off!
The electricity or gas supply may not be cut off if the disadvantages of the cut-off are particularly severe. In principle, the supplier should be aware of this automatically, but you should nevertheless notify them of the foreseeable drastic consequences immediately.
Examples: Small children and/or sick, disabled or old people under your care would be at risk; there is a threat of damage to health due to lack of heating, home dialysis, artificial respiration equipment; livelihood is at risk (e.g. home office; exam revision).
But: even if such reasons exist, the monthly instalments must still be paid in future, otherwise the supply may be cut off!
Submit evidence to prove how you intend to pay in the future!
The fuel supply may not be cut off if you, the customer, can demonstrate that all arrears will be paid. To do this, contact the social welfare office in your area immediately and apply for a loan to cover the fuel debts. The legal basis for this is Book XII, § 36 of the German Social Code which is intended to protect people against the loss of their homes. The disconnection of the fuel supply is recognised as a „comparable emergency situation“.
If you receive Citizen’s Income (Bürgergeld), inform the job centre about the threatened cut-off. Apply for them to take over the arrears in the form of a loan (even if you have already done this). The legal basis can be found in § 22 (8) of Book II of the German Social Code (SGB II). 5 % of your basic Citizen’s Income will be withheld to repay the loan (§ 42 a (2) of Book II of the German Social Code (SGB II)).
The department will check whether there is a threat of hardship (e.g. small child, flat without heating in winter) and will investigate how the arrears occurred.
Remember: Send your supplier a copy of your application for your debts to be assumed by the social services office.
When must the supply be reconnected?
The fuel supply must be reconnected as soon as the arrears are settled. However, you must pay a lump sum disconnection and reconnection fee. Your supplier may also demand a security deposit (German: Kaution). Alternatively, they may also propose a prepayment plan using a prepay meter (so-called electronic prepayment system).
Is a change of supplier the answer?
If you are not able to pay the arrears and the social services office does not take over your fuel debts, a new supply contract may solve your problem.
You must be reconnected to the grid for the new supplier.
However, many providers require a positive SCHUFA report (German credit record) before they conclude a contract with a new customer. It can also take more than one calendar month before the new energy supplier delivers fuel.
Remember: A change of supplier may be a way out in individual cases. But if you do not pay your bill with the new energy supplier, you risk being charged with fraud!
