Renters’ Rights: Past Due Utility Bills and Preventing Disconnection
Posted on April 19, 2023 by Charlie Krouse
Tags, Oregon Utilities 101, Energy, General Interest
Many households struggle to afford their utility bills at some point. In this blog, we lay out how to ensure you are protected when you cannot afford your utilities as a renter in Oregon.
There are different ways you can be charged for utilities as a renter. In our Utilities 101: How Can Renters be Charged for Utilities blog, we lay out how you can be charged.
In this blog, we’re highlighting:
- What happens when you cannot pay utility bills (through your landlord or directly to the utility provider)
- Renters’ rights around utilities and eviction
- Preventing disconnection
Utilities Charges Paid to Your Landlord
Paying Utilities to a Landlord
In this type of billing, the utility usage is only tracked for the entire building, not each individual usage. The building owner is responsible for paying the utility company and charges each unit based on estimated usage. Your landlord cannot charge you more for your unit’s utilities than they are paying to the utility company.
Your landlord or property manager can calculate the utility charge for each unit based on a variety of criteria. This is usually calculated based on occupancy, square footage, or some combination of the two.
According to Oregon Law Help:
If the rental agreement does not outline how the amount charged to the tenant for utilities was figured out, the tenant can get a copy of the bill from the landlord before paying the charge. If your landlord fails to follow the requirements explained in this paragraph, you may sue your landlord and ask for damages in the amount of twice the amount you were wrongfully charged or one month’s rent, whichever is more.
Non-Payment for Utility Charges to Landlords
In Oregon, if a renter does not pay a utility charge to the landlord, there are limits to how a landlord can take action. For prolonged non-payment in this case, a renter can be evicted.
Landlords Cannot Disconnect Utilities for Non-Payment
Landlords cannot make threats to shut off your utilities or take any out-of-court action to force a tenant to move or limit your access to your utilities. Due to Oregon habitability laws, tenants are legally required to have access to basic utilities like electricity and water. Even in the instance of non-payment, landlords are not legally allowed to shut off utilities.
Landlords Can Evict for Utility Charge Non-Payment (with restrictions)
A landlord cannot evict renters for non-payment of rent if the non-payment is only for utility charges. They can, however, evict a renter for a no-cause or for-cause eviction. No-cause evictions are for tenants on a month-to-month agreement. For those on a fixed agreement (six months/one year/etc.), the landlord can evict for a for-cause eviction. Visit Oregon Law Help for more information on your protections against eviction.
Rules Around Eviction for Utilities
No-cause evictions (month-to-month): This type of eviction requires a 60-day notice for renters who have lived in the residence for over a year. For under a year, they are required to provide a 30-day notice. For the City of Portland, landlords must give a 90-day notice no-cause eviction notice, no matter how long the renter has lived in the residence.
For-cause evictions (fixed lease): This type of eviction requires a 30-day notice, regardless of how long the renter has lived in the residence. Renters have the opportunity to fix the problem within the term of the rental agreement within 14 days.
This means, if you are late on a utility charge payment, a landlord may issue a for-cause eviction notice. But if you pay the bill within 14 days, you can have the ability to avoid eviction.. One major caveat is, if the same problem occurs again within six months of receiving the 30-day eviction notice. In this case, the landlord can give a 10 day eviction notice without allowing any time to fix the problem.
Utility Bills Paid to Utility Providers
Non-Payment for Utility Bills to Utility Providers
Utility providers may have their own policies regarding late payments and disconnection of service. If a renter falls behind on their utility payments, they will receive a notice from the utility provider. The utility provider may also charge late fees or interest on unpaid balances. And the utility may ultimately disconnect the service if the balance is not paid.
Disconnections for energy utilities are not allowed in the case of severe weather, including times of wildfire evacuation notices. Low-income utility customers have added protections around utility disconnection and added fees. Income-qualified customers cannot be charged a late fee and have protections against reconnection fees. For more information on disconnection protections - New Protections Against Energy Shutoffs for Oregon Households (CUB Blog)
Landlords Could Evict for a Utility Disconnection
If a renter does not pay the utility company for service and is disconnected, the landlord could have grounds for eviction. Disconnections for energy and water utilities put renters at risk of being evicted for a for-cause or no-cause eviction, depending on your lease status (see details on eviction rules above).
The basis is that most rental agreements require the tenant to maintain certain utilities. Oregon law requires a tenant to not damage the premises and to use the premises in a reasonable manner. Failure to have heat in winter or electricity (for refrigeration and/or heat) or water/sewer/wastewater for a toilet risks damaging the premises and not using the premises in a reasonable manner.
However, the shutoff of cable or internet utilities would not seem to be cause for eviction.
Avoiding Utility Disconnection
Paying a portion of the utility bill, even if it is not the full amount, can help prevent utilities from being shut off and reduce late payment fees. Utility companies have a few options to avoid disconnection. There is also support to help customers be able to pay utility bills.
Each utility company follows a similar model for providing their customers with solutions to pay off their overdue bills or even extend the due date to avoid late fees. Below are a few options to lower the risk of late payment.
Change your billing due date: Utilities allow you to choose the date your bill is due each month. This helps customers manage payment dates and account for monthly budgeting.
Due date extension: Utility companies may allow you to extend a due date on a bill. You can request an extension through your utility company’s website or by calling customer service.
Equal Pay: Equal pay makes planning for your monthly utility bill easy. Utility companies estimate your annual electricity use based on what you’ve used in the past. You pay the same amount each month based on your expected usage over a year. The utility will review your account a few times a year and adjust your Equal Pay amount if needed (usually a small amount). This option is only available for customers current on their payments.
Low-income Energy Bill Assistance: Income-qualified customers can receive monthly bill discounts through the utility company: This option is ongoing and can be combined with other bill assistance programs. Depending on your energy utility, annual household income, and household size, your monthly discount could be between 15 and 40%. Read more about the discount options available and how to apply. (Note: This option is only available to Oregon customers of PGE, Pacific Power, Idaho Power, NW Natural, Avista, and Cascade.)
Payment plan for past due balances: For past due accounts, utilities offer a variety of repayment plans. The options vary by utility, though typically include spreading the past-due balance over months or a year. Contact your utility’s customer service for more information about payment plans.
Bill Payment Assistance & Energy Shutoff Assistance: Local community agencies provide bill payment assistance programs. These programs assist low-income households to make their energy costs more affordable. They also help prevent disconnection due to nonpayment. Payments are made to the utility company on the customer’s behalf. For information about assistance programs in your area, visit the full list of community agencies. For information about water bill assistance, contact your water utility.
Past Due Utility Bills from Previous Tenants
If there is an outstanding bill from a previous tenant, you are not responsible for covering that amount.
If you can’t get utility service because of someone else’s unpaid bills, you can:
- Pay the bill and deduct it from your rent;
- Reach an agreement with the landlord as to how the bill will be paid and get the agreement in writing; or
- Immediately end the tenancy by telling the landlord what happened and explaining that you will not keep the unit.
If you immediately end the tenancy, the landlord has 4 days to return the prepaid rent and your refundable security deposit. If the rental agreement is terminated and the landlord fails to return the money owed to you, you are entitled to twice the amount wrongfully withheld.
Stay Up to Date on Oregon Utility Issues
CUB will continue to advocate for people in Oregon on major utility issues. Sign up for the CUB email list for the latest updates, action alerts, and news on policies that affect the utilities your home relies on.
01/18/24 | 5 Comments | Renters’ Rights: Past Due Utility Bills and Preventing Disconnection