January 30, 2013 at 5:54 p.m.
Sun exclusive

Lights out as bills go unpaid

More than 1,000 homes cut off this year
Lights out as bills go unpaid
Lights out as bills go unpaid

By James [email protected] | Comments: 0 | Leave a comment

FRIDAY, APR. 1: Hundreds of residents have had their lights turned out for failing to pay bills as recession woes continue to plague Bermuda.

More than 1,000 homes have been disconnected for ignoring bills so far this year — a huge increase on 2010.

And about 250 BELCO customers had their power supply cut off during a single day blitz on Monday.

The company switchboard was buzzing with calls from angry residents who returned from work to find they could not cook dinner or switch on the television.

But BELCO says it only cuts power as an absolute last resort for customers who consistently fail to pay after repeated warnings.

Bosses say Monday’s action was a one off designed to clear a backlog of disconnection orders that had mounted because of staffing issues.

But the blitz highlights how a growing number of Bermudians are now unable to afford basic necessities.

Customer Service agents at the power company have been faced with grown men breaking down in tears because they can’t make payments.

One woman went without power for six months before she contacted the company for help.

Another couple, out of work for months, relies on their teenage son’s wages from packing groceries to pay their bill.

Others resort to extreme measures to avoid payment.

In one case a repeat offender who had his power cut off and his meter box removed, jammed a fork into the circuit to switch his electricity back on.

The company promises to work with anyone who contacts them to arrange payment plans or connect them with aid agencies.

But those who simply ignore the letters and calls can expect to have their power cut.

A total of 1,134 disconnection orders have been issued by BELCO this year because of unpaid bills — 387 in January, 307 in February and 440 in March.

Some are repeat cases, but the majority are separate households.

The numbers are way up on this time last year with staff estimating a 40 per cent increase in disconnections.

Chris Coelho, senior vice president of finance and administration, said:  “People are struggling. We’ve seen a definite increase in the number of customers falling into arrears and as a consequence the disconnection orders we have been generating have been increasing.”

Typically BELCO sends out a reminder notice within 35 days of a customer failing to pay a bill. That’s followed by a telephone call if the bill is still not paid two weeks later.

At that point the company offers a payment plan to help customers avoid being disconnected.

But those who refuse to pay or ignore the calls can expect to be cut off at any time after 56 days.

At that point a disconnection order is sent to a BELCO meter reader who flicks the power-switch and padlocks the meter box the next time he visits the property (usually once a month).

Mr. Coelho said on-the-job training for three new meter readers had meant a series of disconnection orders were not carried out — resulting in Monday’s catch-up effort.

He added:  “Disconnection is the last resort. We realize Bermuda is in very tough economic times. We decided to forego the approved rate increase because we realized the recession was hitting Bermuda harder than a lot of people anticipated.

“We recognize people are finding it more difficult to pay and we urge anyone who is struggling to come in and talk to us. Come in early, don’t let the arrears mount up.

“Anyone who comes in and works with us, we will work with them.”

While many customers take advantage of staggered payment plans, others resort to extreme measures to avoid paying bills.

In an increasing number of cases BELCO engineers have been forced to remove the meter box  - a process called ‘neutralization’ —  because of people breaking the padlock and turning their power back on.

Even when the meter boxes have been removed some resort to dangerous makeshift DIY electronics – hooking themselves back into the main power line with their own wires, or in one case a fork.

In other cases people have stolen meter boxes from other homes to reconnect their power.

Deanda Daniels, customer service manager at BELCO, said the company was dealing with around a dozen cases a month where its padlocks had been broken and the box had to be removed — up from just two or three a month in normal times.

Ms Daniels and her staff are on the front lines of Bermuda’s struggle against economic recession. As unemployment increases their job gets tougher.

“We see more than most the condition that Bermuda is in. I have grown men in my office literally crying because they have no idea what they are going to do.”

She said most people who couldn’t pay were genuinely facing hard times — others were disorganized or had trouble prioritizing.

“I’ve had a conversation with many customers in the summer where they have called to say they can’t pay and they have their air conditioning running all day long.

“You suggest they could cut their bill in half by turning the air conditioning off and so many won’t do it. Even though the alternative might be to have their power turned off altogether.”

Others pay their Cablevision bill before their electricity bill — forgetting they won’t be able to watch television without power.

Mr Coelho added: “We have to get people to be more energy efficient and to determine their priorities a bit better.”

BELCO points out that the vast majority of its 36,000 customers pay on time or early in order to meet the deadline for a five per cent discount.

The company offers electronic billing, direct debit billing or on-demand billing (when the customer opts to authorize debit from their account, after okaying the amount) among a series of options to make it easier to pay.

People on Financial Assistance have the flat $30 monthly facilities charge covered.

If you are in arrears on your electricity bill and want to avoid being cut off call BELCO on 295-5111 or through www.belco.bm.  

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