A total of more than 6,500 utility customers owe a combined $2.7 million as a COVID-relief deferral plan comes to a close.--NEWS FILE PHOTO
cgallant@medicinehatnews.com@CollinGallant
A total of $2.7 million in unpaid utility bills will come due later this week as a utility deferral program is set to expire, the News has learned.
Figures provided by the City of Medicine Hat’s finance department show that one in five customers has a balance owning on their accounts early this week, meaning they are captured in a program that waived late fees for three months during the COVID pandemic response.
That window expires on Thursday however, and about 6,500 customers are facing additional charges unless they pay in full or arrange to take part in a city offer to set up a 12-month payment plan.
“Some people have already called to set up a repayment plan, and we definitely encourage utility customers to look into it,” said Dennis Egert, the city’s corporate services commissioner. “If you’re able to pay your bill, do. If you’re not, or you need more time, call us. There are options.”
Inquiries should be made through the city’s collections department, and information is posted on the city’s website.
In late March the province announced it would require utility companies in the province to suspend late fees and disconnection proceedings for a 90-day period.
That was specific to power and natural gas providers, but the City of Medicine Hat expanded it to all portions of the five-part local utility bill, including water, sewer and garbage collection.
The city also made the program universal, meaning no special application process was required, but also encouraged people to keep bills as current as possible.
The total number of bills with outstanding balances equates to 22 per cent of customers in the City of Medicine Hat service area, which includes Redcliff for gas and power, plus parts of Cypress County.
But, Mayor Ted Clugston said Tuesday that some portion of that likely includes a number of people who have the means to pay, but haven’t either to conserve financial options or out of convenience.
Egert said the vast majority of Hat utility customers are being responsible.
“It’s incredible to have to go through COVID, and we see what people are going through,” said Egert. “I also find it incredible that so many people are paying what they can.”
To avoid potential of balloon payments, the city also offered to spread accrued amounts to monthly bills over the next 12 months.
City council also approved making up to a $1-million donation to the Community Warmth Program, which is jointly administrates with the Salvation Army and St. Vincent DePaul Society to provide one-time help to settle outstanding bills. The program has a qualification process that can only begin once disconnection proceedings have begun.
