Utility companies manage service disruption compensation in a distinct manner compared to cable, internet, and phone companies. Generally, these firms do not offer reimbursements unless the situation is exceptionally severe. Cable, internet, and phone companies, on the other hand, commonly refund one-thirtieth of the monthly bill for each day without service.
Disruptions in your cable and internet services are not only a hassle but can also have tangible repercussions. This is particularly true if you experience a temporary loss of electricity, heat, or water. Beyond coping with the outage, there are strategies homeowners can employ to recover their costs.
Brandon Young, CEO of Payless Power, notes, “Utility and service providers have differing policies regarding reimbursement for service interruptions during power outages. Internet and cable companies may be more inclined to provide credits for outages that last a day or more.”
We consulted experts to learn about the process of being reimbursed for unavailable services and outages.
Brandon Young heads Payless Power in Texas. Chili Palmer serves as the consumer advocacy editor at HighSpeedInternet.com. Heather Eason is the founder and president of SELECT Power Systems.
Since utilities are billed differently from cable and internet services, the refund policies differ. Here’s what is generally covered for each service.
Utilities typically do not offer refunds. Electricity, water, and gas are usually billed based on usage.
Chili Palmer from HighSpeedInternet.com explains, “For power outages, most companies bill based on usage at the end of each month, so there are no refunds, but customers aren’t charged for power they don’t use.” Refunds are generally not needed or provided for these services.
Young elaborates, “Electric utilities typically do not provide reimbursements for lost electricity during outages, as no consumption or charges occur, and contracts often categorize outages as unavoidable events, particularly those caused by weather.”
If you find yourself without a critical utility, such as heat during a cold snap, you may be eligible for some compensation from the provider.
Heather Eason, founder and president of SELECT Power Systems, states, “Some utility companies offer automatic credits or payments for prolonged outages, especially those caused by severe weather. For instance, PG&E’s Safety Net program provides payments of $25 to $100 for outages lasting 48 hours or more due to storms.”
Eason also mentions that some utility companies compensate for food or prescription medications lost due to lack of refrigeration if an outage lasts for a specified duration, such as up to 72 hours.
In some instances, you may need to file a claim with your homeowner’s insurance for these types of reimbursements.
Palmer advises, “If the outage was caused by a covered event such as a lightning strike, windstorm, or other peril, your insurance policy might cover the cost of spoiled food, lost business, or even hotel expenses if your home becomes uninhabitable.”
Public utilities are often billed differently from cable and internet services, leading to varied refund policies. Here’s what is typically covered for each service.
Utilities usually do not provide refunds. Electricity, water, and gas are typically based on usage.
Palmer from HighSpeedInternet.com explains, “For power outages, most companies bill based on usage at the end of every month, so there are no refunds, but customers aren’t charged for power they don’t use.” Refunds are generally not needed or provided for these services.
Young adds, “Electric utilities typically do not provide reimbursements for lost electricity during outages, as no consumption or charges occur, and contracts often categorize outages as unavoidable events, particularly those caused by weather.”
If you believe you’ve been without a vital utility, such as heat during a severe cold spell, you might be entitled to some compensation from the provider.
Eason states, “Some utility companies offer automatic credits or payments for extended outages, especially those caused by severe weather. For example, PG&E’s Safety Net program provides payments of $25 to $100 for outages lasting 48 hours or more due to storms.”
Eason also notes that some utility companies compensate for food or prescription medications lost due to lack of refrigeration if an outage lasts for a certain period, such as up to 72 hours or more.
In some cases, you may need to file a claim with your homeowner’s insurance for these types of reimbursements.
Palmer advises, “If the outage was caused by a covered event such as a lightning strike, windstorm, or other peril, your insurance policy might cover the cost of spoiled food, lost business, or even hotel expenses if your home becomes uninhabitable.”
Cable and internet services are usually billed on a monthly basis, with users paying a flat fee each month, which may be charged in advance.
If you experience a day or more of interrupted internet, cable services, or landline phone services, you are entitled to a prorated amount for the days when you were unable to use these services.
Palmer explains, “Typically, [outages] must be widespread and last a certain amount of time. Refunds usually amount to about one day of the service cost, so about 1/30th of the total bill before taxes and fees. That’s usually a few dollars. Other companies offer automatic refunds only to businesses, so residential customers are out of luck.”
In any case, you must provide detailed documentation of the outage to receive a refund. To do this, keep track of all notifications of storms or outages in your area.
Young advises, “I always recommend keeping a record of the outage start and stop times, and calling customer service as soon as it is safe to do so.”
Claims must be made promptly. If you fail to provide documentation or delay in contacting the company, your claim may be denied.
You also need to take the initiative to seek a refund.
Young explains, “Most provider credits are not automatic. You’ll likely have to call them yourself.” You can try calling by phone or contacting your provider online.
Young adds, “A few companies have live chat or text options that can make this process faster than calling and waiting. If you’re unsure, visit your provider’s website. Some even have special webforms you can use for requesting credits on outages.” Be sure to have key documentation ready.
When submitting a request for a credit, have your account number ready and the day and time when the interruption occurred. If possible, include a screenshot of your interruption notice or a letter from your local utility stating that the service was lost. Anything that can demonstrate you were affected can help your case move more quickly.
If your provider agrees to credit you, it may take between 30 and 60 days to see the credit on your account. If not, follow up.
Young advises, “If you’re denied on your credit form, don’t panic. Request to have your case re-visited, have your documentation readily available, and insist on going by whatever method available, telephone, email, and even social media. Organizations react better when there’s a visible paper trail. The key is to stay polite, organized, and consistent.”
Your claim may be denied because many providers explicitly state in their contracts that they won’t provide credits for outages, particularly in the event of weather-related incidents. “These provisions are common, so take a glance at your Terms of Service before filing a claim,” Young cautions.
When it comes to documenting outages related to utilities, Eason suggests similar documentation techniques for your homeowner’s insurance company, which may or may not cover your damages and losses.
“You may need to provide your insurance company with documentation such as photos of spoiled food and an itemized list with estimated costs,” Eason says. “Remember that with homeowners policies, deductibles and limits on compensation usually apply.”
