Utility Rights:
Winter Shut-Off Moratorium Tips
As of Nov. 15, electric and gas companies will not be allowed to terminate heat-related utility service if the household has demonstrated “financial hardship”. Traditionally this protection lasts through March 15, though often it is extended to May.
A few moratorium tips:
- Make sure your clients have a "financial hardship" form on file with the company. Companies can provide you a copy on request. A household automatically qualifies for "financial hardship" if the household income is at or below 60% of median income: $59,137 for a family of four (see chart for other family sizes – see last column).
- While clients who qualify for fuel assistance can automatically get "financial hardship" protection once the utility knows that the client gets fuel assistance:
- It can take a while for the local fuel assistance agency to process the application and alert the company to the fact that the client has qualified for fuel assistance,
and
- The client has to provide the fuel assistance agency with the correct utility account number for this to work, which means some clients will fall through the cracks. For example, a client who applies for fuel assistance and who heats with oil may not promptly give the fuel assistance agency her electric account number. Her electric account therefore won't be protected during the winter moratorium.
- Therefore, it always makes sense for the client to turn in a financial hardship form to the utility on his or her own.
- Technically, only "heat related" accounts are protected by the winter moratorium. This means that someone who heats with gas can get protection for the gas service, and anyone who pays for their own heat can get the electric account protected because electricity is needed for thermostats, furnace fans, and heating system controls.
- However, in practice most companies won't discontinue utility service doing the winter so long as the client has a financial hardship form on file. So, again, it always makes sense to turn in a financial hardship form.
- Make sure clients are on the low-income discount rates. Depending on the company, the discounts are worth 16% to 32% off of the entire bill. Any household receiving any form of public assistance whose income is at or below 60% of median income is eligible for the discounts. (Unfortunately though, only investor-owned utilities are required to offer discounts. Those served by municipal utilities won’t have access to discounted rates.)
For more information
Social Services staff can visit our website www.mghsocialwork.org > Staff Access > Utilities. Or see mass.gov’s Help With Your Winter Utility Bill.
- Adapted from “ Winter moratorium approaching!”, owner-utilitynetwork@lists.nclc.org, On Behalf Of Charlie Harak, National Consumer Law Center, November 04, 2010.
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