What happens if I don’t pay my electricity bill?

Non-payment of the electricity bill can lead to several sanctions, which can affect both your financial situation and your electricity supply. In this article, we’ll discuss what happens if you don’t pay your utility bill and what you can do to avoid potential problems.

1. Payment reminders and late payment interest

The first penalty for not paying an electricity bill is usually a payment reminder. The electricity company will send you a reminder informing you of the overdue invoice and possible late payment interest. Late payment interest is regulated by law and is added to the amount of the original invoice. The amount of interest on late payments can vary, but it is usually around 7-8% per year.

2. Collection actions

If you don’t pay the bill even after a reminder, the utility company can transfer the claim to a debt collection agency. The collection agency will send you a collection letter demanding payment and informing you of collection costs. The collection costs can be considerable and they are added to the original invoice and late payment interest.

3. Power cut

If the bill is not paid even after collection actions, the electricity company can cut off the electricity supply. Before the electricity is cut off, you are usually sent a warning, giving you the opportunity to pay the bill before the cut off. Power outages can cause significant inconvenience, such as loss of heating and lighting, which can be particularly problematic during the winter months.

4. Deterioration of credit

Non-payment of an e-bill and the resulting collection actions can affect your credit information. A payment default notice can make it difficult to get a loan, get a rental apartment, and even get a job. Deteriorating credit information can affect your financial situation in the long term.

5. Possible legal actions

In extreme cases, if the bill is not paid and collection efforts are not successful, the electricity company can take the matter to court. Court costs and possible payments according to the judgment are added to the original invoice, interest on late payment and collection costs.

How to avoid problems?

• Contact the electricity company: If you know that you will not be able to pay the bill on time, contact the electricity company as soon as possible. Many companies are ready to negotiate a payment schedule or offer payment arrangements.
• Apply for financial help: If your financial situation is difficult, you can apply for help from, for example, social services or various aid organizations.
• Monitor your finances: Keep track of your income and expenses so that you can anticipate potential financial problems and prepare for them in time.

For more information on paying electricity bills and related sanctions, you can find, for example, Energiavirasto and From the website of the Consumers’ Association.