Utility Bill Disputes: How to Challenge Electric, Gas, and Water Charges

An unexpectedly high utility bill can be a sign of meter malfunction, billing errors, or leaks you don't know about. The Consumer Financial Protection Bureau (CFPB) provides resources on understanding utility billing practices. Understanding your rights to dispute charges and request meter testing can save you hundreds or even thousands of dollars.

Your Right to Challenge: State public utility commissions regulate utilities and give consumers the right to dispute bills, request meter tests, and appeal to regulators if disputes aren't resolved.

Common Utility Billing Problems

Suspiciously High Bills

  • Bill suddenly much higher than usual
  • Usage seems impossible for your household
  • Bill increased after meter replacement
  • Estimated billing was inaccurate

Billing Errors

  • Charges for wrong address or meter
  • Rate plan applied incorrectly
  • Fees or surcharges not disclosed
  • Credits not applied

Service Issues

  • Charged during service outage
  • Deposit not returned
  • Improper disconnection
  • Billing for period before move-in

Investigating High Bills

Before Disputing

  1. Compare to previous months and same month last year
  2. Check for changes in household (new appliances, guests)
  3. Look for leaks (water) or energy waste
  4. Review if bill is estimated vs. actual reading
  5. Check rate changes or new fees

Checking Your Meter

  • Learn to read your meter
  • Compare reading to bill
  • Track usage over several days
  • Turn off everything and watch meter

Meter Test: You have the right to request a meter test. If the meter is found faulty, the utility must adjust your bill. If accurate, you may pay a small testing fee.

Disputing Your Bill

Step 1: Contact the Utility

  • Call customer service
  • Explain specific concerns
  • Request investigation
  • Get reference number

Step 2: Request Investigation

  • Ask for meter reading verification
  • Request meter test if reading seems high
  • Ask about billing history
  • Inquire about rate changes

Step 3: Formal Written Dispute

If phone calls don't resolve:

  • Send written dispute letter
  • Reference account and specific charges
  • Include your investigation findings
  • Request specific resolution
  • Keep copy for records

Step 4: Escalate to Regulators

If utility doesn't resolve:

  • File complaint with state public utility commission
  • PUC will investigate
  • Utility must respond formally
  • Can result in bill adjustment

Meter Testing Rights

How to Request

  • Contact utility in writing
  • Request official meter test
  • You may be able to witness test
  • Results provided in writing

What Happens If Faulty

  • Utility must replace meter
  • Bill adjusted for period of malfunction
  • Usually estimate based on prior usage
  • No charge for test

What If Meter Is Accurate

  • Small fee may apply (typically $25-50)
  • Look for other causes of high usage
  • Check for leaks or theft
  • Energy audit may help identify waste

Specific Utility Types

Electric Bills

  • Check for faulty appliances
  • HVAC is often biggest user
  • Time-of-use rates may affect cost
  • Consider energy audit

Gas Bills

  • Check pilot lights and furnace efficiency
  • Gas leaks can cause high bills (and danger)
  • Weather affects heating usage
  • Water heater age matters

Water Bills

  • Check for running toilets
  • Look for underground leaks
  • Irrigation systems can use a lot
  • Some areas charge for sewer based on water

Shutoff Protections

Rules Utilities Must Follow

  • Must give written notice before shutoff
  • Notice must state reason and deadline
  • Must offer payment plan options
  • Cannot shutoff during dispute (usually)

Special Protections

  • Medical necessity: Protection for those with medical needs
  • Extreme weather: Moratoriums during heat waves/cold
  • Low-income programs: Assistance programs available
  • Elderly: Additional protections in some states

Act Before Shutoff: Contact your utility immediately if you can't pay. Payment plans are usually available, and assistance programs may help.

State Utility Commissions

Every state has a regulatory body:

  • California: CPUC
  • Texas: PUC of Texas
  • New York: NY PSC
  • Florida: FL PSC
  • Search "[your state] public utility commission"

What Regulators Can Do

  • Investigate complaints
  • Order utilities to respond
  • Require bill adjustments
  • Issue fines for violations
  • Set service standards

Assistance Programs

If you're struggling to pay:

  • LIHEAP: Federal assistance for heating/cooling
  • Utility programs: Many have income-based discounts
  • Local assistance: Charities and nonprofits
  • Payment plans: Spread debt over time

About FreeDemandLetter

FreeDemandLetter is a free consumer advocacy platform that helps people recover money owed to them. Our AI-powered tool generates professional demand letters with location-specific legal citations across 270+ jurisdictions in 14 countries.

Learn more about our mission | FAQ

Dispute Your Utility Bill

Generate a formal dispute letter for billing errors or overcharges.

Create Your Letter