What is arrears in electricity bill?

Hi there! You must have encountered a term called “arrears” mainly in your electricity bill. I am a regular bill-payer and like to keep things in check. However, In July this year, it slipped out of my mind as I went on a family vacation during the time of bill payment. I saw that my bill is in arrears. Thus, I enquired and figured out the meaning behind it. Arrears in general account for a legal term which refers to a pending payment that has surpassed the due date to clear the bill. Like Aniket mentioned above, the arrears section holds the amount due since the first payment was missed. This slang is used in areas where regular payment is made. For example, monthly rent, internet bill, etc. Arrears in electricity bill means a similar thing. Let me take you through the process. 

Arrears meaning in current bill

Your electricity account is said to be in arrears when you miss either one or more bill payments. If you do not clear the amount sitting in the arrears section, you’ll be sent a notice to pay the electricity dues. If action isn’t taken even after a reminder, the electricity department may disconnect your services until you pay the complete outstanding bill.

I hope you now know about what is arrears in current bill. 

A percentage of a debt that is overdue because the required payment was not made is referred to legally as an arrear. I once missed out on my office electricity bill payment and I saw that the bill was added in the arrears section. Here is what I learnt more about arrears meaning in electricity bill.

What are the arrear charges in electricity bill?

A portion of a payment that has not been paid in full because one or more required instalments have not been made is referred to as arrears. Aniket also highlighted the same thing. The amount that has been owed after the first missed payment deadline is known as the amount owed in arrears. This is referred to as principal arrears in electricity bill.

• An account is said to be in arrears when the expected payment, tax, or liability is overdue for payment.

• The account is in arrears if one or more instalments were delayed. It can be on services such as utility or monthly bills, mortgage or rental payments, or any other normal payments that are required by the agreement.

You are now aware of the arrears meaning in electricity bill.