By Victor Omondi
Chris Kinney, who resides in Rapides Parish in central Louisiana, has had his power turned off eight times in the last two years due to unpaid Cleco Power bills.
To catch up, his family did everything they could think of: pawned items, racked up massive bank overdraft penalties, borrowed money, and applied for energy assistance.
However, Kinney’s pending bill kept growing.
Whereas his power bills totaled around $6,400 over the past two years, Cleco Power also charged him over $1,250 in late fines, reconnection fees, and deposits for being late on his bills.
“These charges keep piling up and there is no way to catch up. The financial strain was just insane,” stated Kinney.
In 2019, Americans paid a total of $561 million in late fees to power providers.
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However, the amount you pay is determined by where you live.
According to an Associated Press review of federal regulatory data, numerous major utility companies in states such as Louisiana, Mississippi, Kentucky, Florida, and Maryland charge consumers late fees that are far higher than the national average.
Between 2011 and 2020, five electricity companies — Cleco Power, Kentucky Power Co., and three Entergy Corp. subsidiaries — averaged more than $17.50 per customer in yearly late fee revenues. In the same time period, the national average of $5.83 per client was three times higher.
The costs make up a modest portion of large energy firms’ overall revenue — less than a quarter of a percent on average — but they can be crippling for those who must pay them.
Customers who cannot afford their utility bill to begin with are generally penalized by late penalties. Poorly insulated residences, as well as damage caused by natural catastrophes, all contribute to low-income individuals spending a disproportionate amount of their income on energy expenses. Furthermore, Black and Hispanic households are more prone to encounter energy insecurity and utility disconnection.
Source: Late Fines on Power Bills Forcing People to Choose Between Food and Electricity
