What Happens If You Don't Pay an Electric Bill Before Moving

If you leave a utility bill unpaid when you move out, it doesn’t disappear. The utility company still ties the account to your name, your payment history, and your credit report. A past due balance can follow you into your next home.

Unpaid utility bills can lead to late payment charges. They may be sent to a collection agency. You could also face delays or deposits when trying to open a new account for electricity service or natural gas. Your credit score can take a hit.

In this guide, you’ll learn your utility bill responsibilities and what happens if you leave an outstanding balance. Discover the steps to avoid problems when you move.

Understanding Utility Bill Responsibilities

Utilities cover the basics that keep a home running. Electricity, water, natural gas, and the internet all fall under this category. At move-in, your lease should state who the account holder is and who pays each monthly bill.

In many cases, the tenant handles utility payments directly with the utility company. The account number, due date, and bill payment schedule are tied to your name. If you miss a payment, the balance becomes past due. Non-payment may lead to late payment charges, arrears, or even disconnection of electricity service. For a new account later, the company may ask for a security deposit or add reconnection fees.

Sometimes, though, property management covers utility bills and includes the cost in rent. In those cases, the landlord is the account holder, and the pricing is part of your lease. Review your agreement carefully. Residential tenancies differ, and every rental property can set terms in its own way.

Check your lease before you sign. Confirm who pays which utility services, how meter readings are handled, and what happens if there are unpaid utilities. Clear terms now help you avoid problems later, both for you and the new tenant.

What Alberta’s Landlord and Tenant Act Says About Utilities

Under Alberta’s Residential Tenancies Act, the rules for utility bills depend on the lease. A landlord may include electricity service, natural gas, or water in the rent. In that case, the landlord is the account holder, and the pricing is built into the lease. If utilities are not included, the tenant is responsible for each monthly bill and the due date set by the utility company.

When a tenant fails to pay, the outstanding balance stays linked to the tenant’s account number and payment history. Non-payment can trigger late payment charges, disconnection, or extra reconnection fees before a new account is opened.

Disputes are handled under provincial rules. Tenants and landlords can apply through the Residential Tenancy Dispute Resolution Service if they disagree about utility payments. Proof such as meter readings, receipts, and contact information is often required. The Act makes it clear: unpaid utilities stay with the person named on the bill, not with the new tenant or the rental property.

What Happens if You Don’t Pay Before Moving Out

Here’s what can happen if the outstanding balance is ignored.

Debt Collectors Get Involved

When non-payment continues past the due date, the utility company may send your unpaid balance to a collection agency. They use the contact information you gave when you opened the account. Once the file is in collections, you face calls, letters, and added late payment charges until the arrears are cleared.

Opening A New Account Becomes Harder

If you try to set up a new account for electricity service or natural gas, the utility company can see your payment history. An old unpaid bill may lead to higher deposits or a security deposit before service begins. In some cases, the provider may even delay approval for a new customer until the unpaid bills are cleared.

Legal Action Adds Stress and Cost

In some cases, residential tenancies disputes go to court or a provincial board. Property management or landlords may add fees if unpaid utilities are linked to the rental property. A hearing can mean reconnection fees, added costs, and days spent waiting during business days for the matter to be sorted.

How Unpaid Bills Can Affect Your Credit and Future Services

Unpaid utility bills don’t disappear once you move out. They can shape your credit report and affect how future utility companies or landlords treat you.

Unpaid Bills on Your Credit Report

When utility bills remain past due, the utility company can send the unpaid balance to a collection agency. From there, it shows up on your credit report much like credit card debt. Your credit score drops, and lenders see a record of non-payment.

Following You Across Provinces

Moving to a new city doesn’t erase an outstanding balance. Unpaid utilities may follow you across provinces. Credit bureaus share data, so a late electric bill in one place can affect a future new account for electricity service or natural gas elsewhere.

Deposits and Higher Costs for New Service

If you apply as a new customer, a utility company may ask for a security deposit, higher rates, or upfront payment arrangements. Your payment history signals risk. A poor record may even cause disconnection or delays before service starts.

Long-Term Personal Finance Impact

Landlords and property management often check credit reports during move-in for a rental property. A history of unpaid bills can raise doubts about reliability, adding stress to future housing or financial goals.

Steps to Avoid Utility Problems When You Move

Moving already brings enough stress. A few simple steps with your utility company can save money and prevent disconnection.

Step 1: Call the Utility Company Early

Set your move-out date and confirm the final bills. Provide your account number, contact information, and new address. Ask for the due date, the last billing period, and any payment arrangement if bill payment is tight. Early calls can help you dodge late payment charges, non-payment, and disconnection.

Step 2: Closer or Transfer the Account

If service continues at the same rental property, note the new tenant handover. Otherwise, close the account as the account holder or transfer the electricity service and natural gas to your new place. Get written terms on pricing, any security deposit, and steps for a new account as a new customer. This prevents arrears and an outstanding balance.

Step 3: Keep Receipts and Email Confirmations

Moving doesn’t erase your utility bills. These simple steps help you close accounts cleanly and avoid unpaid balances that can harm your credit score.

Save every receipt and confirmation number. File PDFs of monthly bill statements and closure emails. If a dispute arises, you’ll have proof from residential tenancy boards, property management, or a collection agency. Clear records protect your payment history and credit report.

Step 4: Request A Final Meter Reading

Ask for a same-day meter reading within normal business days. This avoids estimates that create unpaid utilities later. Confirm the closing balance, any reconnection fees, and how long it takes to post payments. Check that no unpaid balance remains.

Step 5: Forward Your Address for Straggler Bills

Provide a forwarding address and a reliable phone number. Some utility services post adjustments after you leave. Forwarding prevents lost letters that turn past due and hurt your credit score. It also keeps credit bureaus from seeing avoidable dings.

Step 6: Track Everything and Follow Up

Log each call: date, agent name, and outcome. Keep copies of IDs, forms, and payment plan approvals for a set period of time. If you qualify as low-income, ask about payment arrangements to clear any balance. Close the loop so the file ends at zero, not in collections.

FAQs

Can a utility company refuse service if I owe money elsewhere?

Yes. An unpaid balance can block a new account. The utility company may ask for a security deposit or deny service until the arrears are cleared.

How long do unpaid utilities stay on my credit report?

Unpaid bills can remain on your credit report for up to 6 years. During that period of time, they affect your credit score and can raise red flags for landlords and lenders.

What if I can't pay the full amount at once?

Ask about a payment plan or payment arrangement. Some providers offer options for low-income customers to spread out bill payment over several business days or months.

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