How to Negotiate a Payment Plan With Your Utility Company

If you are behind on utility bills, calling your provider to set up a payment plan is almost always an option — and it can prevent service disconnection. Here is how to approach the conversation.

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Why You Should Call Now

Utility companies would rather work with you than disconnect your service. Disconnection costs them money too — sending crews, processing reconnection fees, and dealing with regulatory requirements. The sooner you reach out, the more options you will have.

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What to Ask For

  • Payment arrangement: Spread your past-due balance over several months while keeping current service
  • Budget billing: Average your annual energy costs into equal monthly payments to avoid seasonal spikes
  • Hardship or low-income program: Many utilities offer discounted rates for qualifying customers
  • Arrearage forgiveness: Some programs forgive a portion of your debt if you make consistent payments
  • Extended due date: If you are waiting on a paycheck or benefit payment, ask for a brief extension

What Information to Have Ready

Before you call, gather the following so the conversation goes smoothly:

  • Your account number and most recent bill
  • Your total past-due balance
  • A realistic amount you can pay now and monthly going forward
  • Proof of income or hardship if applying for a discount program
  • Any disconnection notices you have received

Get everything in writing. After reaching an agreement, ask for written confirmation of the payment plan terms. This protects you if there is a billing error or miscommunication later. Keep a record of who you spoke with, the date, and the reference number.

Utility Company Assistance Programs

Many utility companies run their own assistance programs separate from LIHEAP. These may include:

  • Customer emergency funds for one-time hardship situations
  • Percentage-of-income payment plans that cap your bill based on earnings
  • Free energy audits and efficiency upgrades
  • Appliance replacement or rebate programs

If You Are Already Disconnected

Call immediately. Even after disconnection, most utilities will restore service once you establish a payment arrangement and pay a reconnection fee. Ask if the reconnection fee can be waived or added to your payment plan. In many states, utilities must offer a payment plan before disconnecting and must restore service within 24 hours once you meet the requirements.


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Relief Resource Center may receive compensation when you use links or tools on this page. All programs listed are subject to eligibility requirements and availability. This page is for informational purposes only and does not constitute legal, financial, or medical advice.

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