what is arrears in electricity bill

Arrears in an electricity bill refer to the amount of money that is past due because of the failure to make one or more necessary payments. It is the legal term for a part of a debt that is overdue, and the amount due in arrears is the amount owed since the first missed payments due date. When a customer misses a payment, the electricity company will contact them to make an arrangement to repay the arrears. If the customer does not pay the arrears or reach an agreement about how to pay them, the electricity company can take further action, such as visiting the customers home to collect what they owe, passing their account to a debt collection agency, or disconnecting their supply.