Bend and Extend

Bend and Extend is a flexible payment or contract modification option offered by some energy providers to help customers manage their bills or agreements during financial hardships.

What is Bend and Extend?


Bend and Extend is a flexible payment or contract modification option offered by some energy providers to help customers manage their bills or agreements during financial hardships or changing circumstances. This option allows customers to "bend" (adjust) their current payment terms or "extend" (lengthen) the duration of their payment period or service contract. The goal of Bend and Extend programs is to make energy costs more manageable while ensuring continued access to electricity or gas services.

How Does Bend and Extend Work?


The specifics of Bend and Extend policies vary by provider, but the general concept involves renegotiating terms to better suit the customer’s financial situation. Here’s how it typically works:

Eligibility:

Customers experiencing financial difficulty, such as job loss, unexpected medical expenses, or other hardships, may qualify for Bend and Extend options. Some providers also offer this flexibility during widespread crises, like natural disasters or economic downturns.

Payment Adjustments:

  • Bend: Customers may temporarily reduce their monthly payments by spreading the outstanding balance over a longer period. This can provide immediate relief from high bills.
  • Extend: The duration of the payment plan or contract is extended, allowing customers to catch up on missed or deferred payments over time.

Agreement:

Both parties—customer and energy provider—agree to the revised terms. This agreement typically outlines the adjusted payment amounts, the extended timeline, and any additional fees or interest, if applicable.

Continued Service:

As long as customers adhere to the new payment plan, their energy services remain uninterrupted, avoiding disconnection or additional penalties.

Example of Bend and Extend in Action

A homeowner faces financial strain after unexpected medical bills and struggles to pay a $400 energy bill. They contact their provider, which offers a Bend and Extend option. The homeowner reduces their monthly payment to $200 and agrees to pay the balance over the next three months. By extending the payment period, the customer manages their finances without risking disconnection.

Conclusion

Bend and Extend programs offer a practical solution for energy customers facing temporary financial challenges. By providing flexibility in payment terms or contract duration, these options help maintain access to essential services while easing the financial burden. If you’re experiencing difficulty managing your energy bills, contact your provider to explore Bend and Extend options tailored to your needs.

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