What happens if you don’t pay your energy bills?

Energy bills are expected to hit more than £3,500 a year on average in October, deepening the current cost-of-living crisis.

Experts have warned that spiking prices will drive 45 million Brits into fuel poverty by January.

It comes as households face record breaking inflation, which hit a 40-year high last week after surging to 10.1%.

Read more: Six million people to get £150 cost of living payment boost in September

With families facing the prospect of being unable to afford to heat their homes, pressure groups like Don't Pay UK are encouraging people to refuse to pay their energy bills en masse if they increase again.

What are the consequences if I cancel my direct debit?

If you cancel your direct debit without notifying your provider you may be charged a late payment or administrative fee.

Afterwards, you will likely be moved to a different payment method – which could leave you paying more as some companies offer discounts for customers that pay by direct debit.

If you do not pay by direct debit, you can pay monthly or quarterly when you receive a bill.

However, energy companies were criticised earlier this year after a growing number of customers reported that their direct debit payments increased by more than April's energy price cap change.

The left energy companies holding on to cash by putting customer accounts in credit.

Read more: 'Catastrophic': Inflation could hit 18.6% in January, experts warn

In July, Ofgem said an investigation into the issue revealed customers were "not getting the service they need".

The energy watchdog threatened enforcement action against companies that don't address the problem, and said there must be "a fair system" to "ensure suppliers look after their customers".

What are the consequences if I don’t pay my bills?

If you do not pay your energy bills you will build up arrears.

After a while, the energy company might pass your debt over to a debt collection agency (DCA) if you fail to pay the arrears.

DCAs usually try to negotiate a repayment plan with your supplier if you are struggling to pay back the total in full. Failing to pay the debt could affect your credit rating.

If you do not reach an agreement with your energy company they can apply for a county court judgment (CCJ).

A supplier needs to make sure they’ve given you notice and given you time to pay any debts before this stage.

A CCJ can provide an energy company with a warrant to recover the debt in more invasive ways.

With a valid warrant an energy supplier can:

• Ask a bailiff to call at your home to collect the debt (but they cannot forcibly enter your home)

• Gain a warrant to enter your home to forcibly install a prepayment meter

• Gain a warrant to enter your home to forcibly disconnect you

However, your supplier can’t make you move to prepayment meter or disconnect you if it would be dangerous – for example, if you have an illness or disability which means being disconnected would put you at risk.

Are people refusing to pay their energy bills?

The Don't Pay pressure group says more than 100,000 people have pledged to refuse to pay their energy bills and cancel their direct debits for gas and electricity from October if bills go up again.

Ofgem will announce its new price cap on Friday. Experts at Cornwall Insight predict it will hit £3,554 – with the changes coming into force on 1 October.

Read more: Energy price cap: Huge change coming this Friday – what it means for you

"Even if a fraction of those of us who are paying by direct debit stop our payments, it will be enough to put energy companies in serious trouble, and they know this," Don't Pay's website reads.

"We want to bring them to the table and force them to end this crisis."

It comes as Citizens Advice warn that one in four people will be unable to afford the energy bills when the new price cap comes into force in the autumn.

If you cannot afford your bills, experts say you should try to negotiate a deal with your energy company that works for both of you.

Read more: Cost of living crisis: Families underestimating how much energy bills will rise, research shows