Rising electricity costs, fueled by inflation and upcoming tax increases, pose a financial challenge for many households. Understanding default status is crucial for managing unpaid bills, as support options from the government and various organizations are available. Assistance programs for utility bills, such as energy vouchers and payment plans, can help alleviate financial strain. Additionally, resources like the Housing Solidarity Fund and microcredit options provide further support for those facing housing-related expenses.
Managing Rising Electricity Costs
This year, you’ve likely noticed an increase in your electricity consumption. The impact of inflation has driven prices up significantly, and with the 2025 budget, the government is set to raise taxes on electricity usage. Consequently, you may receive a regularization bill amounting to several hundred euros. If you’re unable to pay this bill, you could find yourself at risk of defaulting on your payment obligations.
Understanding Default and Available Support
A debtor who fails to settle their financial obligations is considered to be in default of payment. According to the Consumer Code, a customer is deemed in default when they dispute the payment or express an intention to refuse payment. If a creditor, collection agency, or bailiff approaches you about settling a bill or loan installment, ensure that the debt is undisputed, clearly defined, and overdue (meaning the payment deadline has passed). Keep in mind that after two years (one year for phone or internet bills), you may no longer be liable for the bill. If you wish to contest a bill, refrain from paying any portion of it, as doing so would imply acknowledgment of the debt and nullify any statute of limitations protections. Instead, send a registered letter detailing your disagreement and request a payment plan or a waiver.
The government offers various forms of support for families, students, job seekers, entrepreneurs, the elderly, and individuals with disabilities. Numerous organizations are available to assist you. Budget Advice Points (PCB) provide support to anyone facing financial difficulties, and an interactive map is available to find PCB contact details across France. Meanwhile, Municipal Social Action Centers (CCAS) help guide individuals in need toward appropriate assistance (town halls can provide their contact information). Additionally, the Bank of France has compiled a list of support measures and resources on their dedicated site, including fact sheets on actions to take if you are in default.
Assistance for Utility Bills
There are also specific programs designed to assist you in managing your water and energy bills. Each year in April, the government distributes energy vouchers to low-income households. The tax administration evaluates your eligibility based on your income declarations.
If you’re struggling to pay your gas or electricity bills, don’t hesitate to reach out to your supplier for a payment plan that aligns with your financial situation. Organizations such as the Family Allowance Fund (CAF) or pension funds may also provide additional assistance.
Less commonly known is the water voucher, available in two formats: preventive aid, which offers a water voucher to decrease bill amounts, or a decreasing rate subscription that allows for the first tier of water consumption to be calculated based on household income and composition. Local authorities distribute this voucher to eligible low-income households, and if you qualify, no action is required on your part.
The Housing Solidarity Fund is another resource that provides financial support for individuals unable to manage housing-related expenses. This can include costs associated with installation, such as security deposits, agency fees, or necessary equipment purchases, as well as ongoing housing costs like rent, bailiff fees, and home insurance.
Additionally, microcredit options are available to assist those in need. For further information, the association Que Choisir provides a comprehensive list of other helpful organizations.