MILLIONS of families could face higher energy bills after ScottishPower introduced an extra fee.
The company has brought in late payment charges as the cost of gas and electricity continues to soar amid the cost of living crisis.
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This means that if you don’t pay your energy bill on time, you could be slapped with an additional charge.
A further £10 will be put on the bill if it’s not paid after 14 days.
If it still goes unpaid after 28 days, customers will be expected to pay a £20 “escalated recovery action fee”.
And a missed direct debit payment will set you back £5.
These new fees are in addition to ScottishPower’s existing debt collection fees and the cost of getting a warrant to install a prepayment meter.
Small business owners will also be charged the same price for late payments under ScottishPower’s new rules.
A company spokesman said: “We introduced an additional fee structure for retail customers are the start of May 2022, including charges for late direct debit payments as well as late payment fees.
“The charges – which were previously absorbed within the business – bring us in line with other suppliers and reflect the costs to the business and collecting debt.
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“Information on the potential charges is included in our collections correspondence so customers are aware of the impact of unpaid bills and missed payments.
The supplier said the easiest way to avoid these potential charges was to “pay on time or set up a direct debit to manage payments throughout the year”.
It said: “We would encourage any customer who has concerns about paying their bill to contact us as soon as possible.”
But the extra fees come as more people struggle with energy debts.
An estimate six million households now owe their energy supplier money – and that number has doubled in the past year.
Families in energy debt now owe an average of £188 to their provider, according to Uswitch.
Energy bills shot up by hundreds of pounds in April when the price cap increased 54%, due to rising wholesale costs.
And experts believe that the price cap will rise this winter pushing up bills to just shy of £3,000 a year.
ScottishPower is not the only energy company to charge late fees.
EDF, British Gas, Bulb and Octopus are among the suppliers which penalise late payment.
The amount and when it’s charged varies between suppliers.
EDF told The Sun that some customers are exempt from charges, for instance if they are ill or financially vulnerable.
A spokesman said: “The aim of the late payment change is to encourage customers aren’t engaging with us to get in touch, so we can provide support and agree a resolution.”
Some firms do not charge late payment fees, including Utilitia and Shell Energy
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.
Citizens Advice 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.
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:
